June 2011 Real Estate News
What’s the Buzz? Although pressure remains on pricing, the number of homes being sold continues to be strong. The result of this trend is a reduction in inventory (homes for sale), and sooner or later that has to impact home prices positively! In fact, we are seeing this already. Just take a look at the chart below, where we examine average sales price trends by price range:
In this breakdown we can see that homes below $100,000 have declined the most over the last year but have experienced a slight recovery in the most recent 3 months. Homes between $400,000 and $799,999 have declined an average of only 0.4% over the last year and recently bounced by 2.6%. While most prices ranges are still selling at prices below 12 months ago, the majority of price ranges are selling at higher prices per sq. ft. in the last three months than they were in the prior 3 month period. Valley wide, we now have only a 3.3 month supply of homes at the current pace of sales. For the first time since November 2005, the Cromford Supply Index™ has fallen below 100. What does this mean? - It means that the supply of active listings for sale is now slightly lower than in a normal market. Simply put, the "glut of homes on the market" that we keep reading about in the news no longer exists. If the index falls below 90 sometime in the next several weeks, the housing supply will have fallen well below normal and we will then have a shortage of homes on the market. Please keep us in mind with all your Real Estate needs (don’t forget to refer your friends to us). We are always looking for new buyers and sellers, so if you know of anyone planning to buy or sell a home, please point them our way! And be sure to watch for our detailed statistics for the local real estate market mid-month! ~Bonnie & Chuck Kennedy
In this edition:
Turnaround: 4 Months and Counting? RISMEDIA, May 16, 2011 – Price declines will end and average U.S. home prices will stabilize by Labor Day. Prices in even the hardest-hit markets will level out by the end of 2012. That’s the latest prediction from the authoritative Moody’s Analytics and Fiserv, Inc, after an analysis of home price trends in 375 markets tracked by the Fiserv Case-Schiller Indexes. Click here for complete article.
ASU economists predict brighter future for Arizona ASU News, May 8, 2011 – Retail sales are rising. Jobs are growing, though barely. Foreclosures and bankruptcies continue to fall. And falling housing prices finally may have started to stabilize. Click here for complete article.
Housing Affordability Rises to Record Levels RISMedia, May 28 2011 – Nationwide housing affordability during the first quarter of 2011 rose to its highest level in the more than 20 years it has been measured, according to National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) data released recently. Click here for complete article.
Phoenix-area rental homes dominate housing market azCentral.com, May 18 2011 – Metro Phoenix has long been known for its supply of affordable houses, easy to buy and resell. Now, the rental market is dominating the region's housing sector, something many real-estate experts and agents didn't expect. Rental homes of all shapes and sizes are in much higher demand across the Valley than they were five years ago. Rents are rising, and rental properties - from foreclosure houses to huge apartment complexes - are drawing investors big and small, local and international. Click here for complete article.
Existing-Home Sales Rise in Most States in First Quarter RISMEDIA, May 12, 2011 – Existing-home sales continued to recover in the first quarter with gains recorded in 49 states and the District of Columbia, while 22 percent of the available metropolitan areas saw prices rise from a year ago, according to the latest survey by the National Association of REALTORS®. Total state existing-home sales—including single-family and condo—rose 8.3 percent to a seasonally adjusted annual rate of 5.14 million in the first quarter from 4.75 million in the fourth quarter, and are only 0.8 percent below a 5.18 million pace during the same period in 2010. Click here for complete article.
Phoenix-area foreclosure rate continues to drop ASU News, May 10, 2011 – For the second month in a row, the hard-hit Phoenix-area housing market saw a drop in the foreclosure rate. A new report from the W. P. Carey School of Business at Arizona State University shows what might be the beginning of a welcome trend. In January and February, 43 percent of the existing-home transactions in the market were foreclosures, but that declined to just under 38 percent in March and now to 36 percent for April. The numbers appear to be moving in the right direction for those hoping to see some stability in the market. However, the author of the new report says not to celebrate yet. Click here for complete article.
Buying a HUD Home: Not a Walk in the Park East Valley Living – Before you go under contract with a HUD home, here’s what you need to know… A HUD home is a foreclosed home, specifically one that has been taken over by HUD as a result of the owner’s previous FHA (Federal Housing Administration) mortgage. Click here for complete article.
U.S. averages as of June 1, 2011: 30 yr. fixed: 4.55% 15 yr. fixed: 3.77% 30 yr. jumbo: 5.11%
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