Monthly market report 0612

Monthly Market Watch
for Maricopa County
An overview of what is happening
in the Maricopa County real estate market
Provided by Keller Williams Realty Professional Partners – Statistics from JUNE 2012 MLS

Provided by Keller Williams Realty Professional Partners
Statistics from June 2012 MLS

Report overview:
This report includes MLS data for the
past 36 months in Maricopa County only
as provided by the FlexMLS system.

Please note that searches fluctuate daily when running these reports;
these figures were obtained on 7/3/12.
A reminder that you need to meet with a real estate professional
to see how statistics impact the area where you are considering selling or buying –
blended statistics will not be as accurate as a more detailed report
that your real estate professional can provide
to help you with your decision making.


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Provided by Keller Williams Realty Professional Partners –

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Closed Sales Report Analysis:
Sellers:
The month of June saw a continued leveling in the number of sales that closed over the
past 3 months. Last month saw a 2.1% increase over the month of May. It is important
to remember that this number continues to remain high when you consider how the
inventory of homes continues to decrease
each and every month.

Buyers:
For buyers, this means that competition for homes continues to be very high.
We continue to see a significant amount of competition for the best properties.
What does that mean? Buyers will continue to see homes continuing to sell well above
list price AND cash buyers being the ultimate winners in the bidding war. Buyers MUST
continue to carefully work with their real estate professional to understand the market
AND to understand how they can compete with the market demand and other buyers
who may be in a financial position that is more appealing to the seller.


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Distressed Sales Analysis:
A bank owned/foreclosure home is one that the seller no longer owns
– it has been taken over by the lender(s) who had a note on the
home. Short sales are homes where the seller is negotiating with the
bank to “forgive” a portion of the debt in order to avoid foreclosure.

June statistics showed a continued decrease in the number of bank-
owned sales. Short sales accounted for 29.8% of the sales, an
increase of 3.3% over the month of May.
“Traditional sales” saw a slight decrease of .6%, adding up to 55.9%
of all sales. Sellers and buyers need to monitor this trend to see how
the market continues to respond to the current inventory.


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Pending Sales Analysis:
Sellers:
As is normal for the month of June, we saw a decrease in the number of residential properties
moving to pending status. The month of June saw an 8.5% decrease over the month of May. With
the decreased overall inventory, it should come as no surprise that fewer homes are going under
contract. Sellers should continue to monitor these numbers to determine what type of activity there
should be on their homes. This statistic will lead to closed sales in future months.

Buyers:
Buyer activity continues to remain very high as the available inventory decreases in today’s market.
Educated and savvy buyers understand that a competitive market gives them fewer options for
home choices, negotiating on price AND looking for concessions from a seller. Although this may
vary from area to area AND from price range to price range, buyers need to make sure they are
fully informed regarding the individual market in which they have an interest. This will give them
the best chance of being competitive in the search for a home.


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Average Sales Price

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Average Sales Analysis:
Sellers:
The month of June saw a decrease in the average sales price from $210,145 to $205,624;
however, this remains the 2nd highest average price in the 36-month reporting period. Sellers have
to be careful not to get too excited – buyers still are looking for affordability AND appraisals can
still be an issue despite the significant increase in price. It is now more important than ever that
sellers continue to price according to the market and understand how the current market will apply
to your individual area and/or home. It will also be important to monitor the impact this trend
begins to have on appraisals and finding qualified buyers at these higher prices.
.

Buyers:
For buyers, it is absolutely critical to be aware of this shift in the price of homes.
This increase means that buyers once again have less buying power than they did in the prior
month. There is no doubt that the low inventory has created competition for the current inventory,
and that this high demand is impacting prices. The $60,000 home is becoming a rare find! More
than ever, you need to work with your real estate professional to make sure you have the best
possible information regarding the market value of homes and to carefully monitor this trend to see
how it will impact the availability, pricing, and terms associated with purchasing a home.


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Average Days on Market

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Average Days on Market:
Sellers:
After several months of stability in this statistic, June followed the trend of the prior 2 months by
significantly decreasing the number of days on market. June saw this number drop to an
astounding 73 days, by far the lowest in the 36 month period. Considering we were at 139 days a
few years ago, there is no doubt the current market is having an impact on how quickly homes are
selling. Well-priced homes continue to go under contract within a matter of hours rather than days
in today’s market. If a home isn’t selling in today’s market, there is no doubt that it is because
buyers see the price as being too high.

Buyers:
Buyers beware! When inventory remains on the market for fewer days, it means that sellers
are having more success selling their homes. The lower the number, the less control
a buyer normally has. The decrease in this number means that sellers are having great success
in finding buyers who are saying “yes” in today’s market. Buyers need to be aware that
competition for great homes continues to remain very high, especially in the lower price ranges.
The importance of having a reliable lender AND real estate professional to guide you through
this process has never been more important.


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Average List to Sales Price Ratio

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List to Sales Price Ratio Analysis:
Sellers:
This statistic has been extremely sporadic during the past 12 months. The past few months, however, have seen
a steady increase in the amount of money sellers are receiving when compared to the price where the home was
listed. June saw an increase of nearly .7% to 97.93%. The higher the number, the closer the final sales price is
to the listing price. With the competitive nature of the market, we would expect that this ratio would continue to
be closer to 100% of the list price of a home. Continue to watch this trend, as it will continue to impact how
homes should be priced in the current market in order to appeal to the buyers.

Buyers:
Buyers need to pay attention. As this average moves even closer to 100%, on lower priced/highly desirable
properties, buyers are discovering more and more in the lower price ranges that they may have to pay above list
price AND they are competing with investors who are bringing cash to the transaction. Since a home must
appraise in order to obtain a loan, underwriters are still looking very closely at prices and making sure that homes
are selling at or below market value. This could mean that investors have an advantage if they are willing to pay
higher than the list price. Make sure your real estate professional helps you understand the competitiveness of
the list price of the home you are wanting to purchase. You also need to be aware of the interest and sales
activity in the area where you are wanting to buy and how the offer you are making competes with the market
AND with trends relative to the price where homes are selling in the areas you have an interest.

Provided by Keller Williams Realty Professional Partners – Statistics from June 2012 MLS
Monthly Expired & Cancelled Listings

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Expired & Cancelled Listing Analysis:
Sellers:
June saw a slight decrease of 209 homes that left the market without selling when compared
to the month of May. There were 11.7% more expired and cancelled listings in June than in
the month of May. A total of 1,788 homes left the market last month. Sellers should remain
very focused on monitoring their local market to ensure that they are pricing homes
and offering terms that are appealing to buyers.

Buyers:
For buyers, be aware that there are 1,788 fewer homes to consider.
At a time when inventory continues to shrink, this means an even tighter market for buyers.
Buyers can expect more competition and less room for negotiation
on price and/or concessions from sellers. A shrinking market means that savvy buyers will understand that they
need to be prepared to act quickly on available homes and know that the ability to get a “deal” on this inventory
is more than likely not an option.
Continue to watch this trend, as this, combined with price, days on market,
and list to sales price ratio are an important indicator of what buyers need to do
in order to be successful in closing on the home of their dreams.


Inventory Overview:


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New Listings Analysis:
Sellers:
The month of June saw a slight increase of 108 new listings entering the market as compared to
the month of May. It is actually normal to see new inventory decrease in this month, so the market
appears to be following the trend of the prior 2 years. At a time when buyers are competing to
find a home, June did see the 6th lowest number of new inventory in the 36-month reporting
period. Sellers should monitor this new inventory to see how it might impact the sale of their home.
In this great market, it is even more important that sellers need to make sure
they remain as the top choice for active buyers in the marketplace.
If your home is not selling in this aggressive market, it is more than likely a pricing issue –
buyers are still looking for the best value possible.

Buyers:
Buyers pay attention! June brought you 8,200 more options! This is potentially good news as
buyers continue to submit multiple offers on available inventory. More than ever, it is essential that
you take advantage of this new inventory. Spend time with and listen to your real estate
professional to develop your strategy for succeeding in a market that is constantly changing.


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Active Listings Analysis:
Sellers:
After 6 months of seeing our active inventory decrease, June saw an increase of 1.6% to 9,946
active residential listings in Maricopa County. This is the 2nd lowest number of active residential
properties listed in the MLS in the 36-month reporting period but it has broken the trend of active
inventory dropping each month.
Sellers need to make sure that they continue to watch this trend to determine how their homes
should be priced in order to be competitive AND the terms that will need to be available for
prospective buyers in order to take advantage of this market.

Buyers:
The current market means that buyers continue to have even fewer homes to consider than in prior
months. Continue to monitor this statistic, as it WILL be the statistic that indicates how much
inventory you will have to preview and how quickly you will need to act … the lower the number,
the more likely the competitiveness for lower priced homes will remain part of the current market.
As always, market activity is local and should be researched with your real estate professional to
determine the activity and desirability of the homes that are of interest to you.


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Months of Inventory

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Months of Inventory Analysis:
Sellers:
The high demand for residential properties in Maricopa continues to have a significant impact on the available
inventory. The month of June saw just a slight DECREASE in this number over the month of May, resulting in
only 1.29 months of inventory. This is the lowest number we have seen in the 36-month reporting period. This
is a dramatic change from the 22.74 months of inventory we had a few years ago. This statistic means, that on
average, we continue to remain in an even stronger “seller’s market” that is identified when this statistic reflects
less than 5 months of inventory. Although this traditionally means that sellers will have more control in a sales
transaction than the buyer, it is essential that you are meeting with your real estate professional to determine the
ACTUAL market in your area. You may find that you have more or less control than the average.

Buyers:
Buyers will want to seriously monitor this as well, as it indicates that there is extremely low inventory.
We remain in a very strong seller’s market. A seller’s market traditionally gives less control to buyers and can
create significant competition for the current inventory. The current low inventory is resulting in homes selling
more quickly, at a higher price, and with fewer concessions for buyers. However, the type of market will vary
from price range to price range” and even area to area. Work with your real estate professional to make sure
you understand the type of market you are in.


Total Market Overview:
Sellers:
This report provides a detailed breakdown of homes in Maricopa County
based on price … by determining the price range where your home
SHOULD sell, you can see what the average list to sales price ratio is,
the average days on market, and more importantly, the percentage of
homes selling in that price range. Note that as the price increases,
so does the days on market AND the list to sales price ratio decreases.
You will also see a lower percentage of homes selling as the price increases.

Buyers:
By reviewing the price range where you are purchasing, you can determine
what the average home is selling for vs. list price.
This should help you make better and more acceptable offers
based on the current market.

Total Market Overview


IMPORTANT
Summary Comments

INFORMATION:
Although these reports are beneficial in understanding the general

market in Maricopa County, it is essential that you meet with
your real estate professional to study these same figures in your area,
as statistics will vary from neighborhood to neighborhood.

As you make decisions related to the purchase or sale of a home, it is
important that you understand how the current real estate trends will
impact your decisions. Your real estate professional is available to help
you monitor and interpret them to make sure that you are taking
advantage of the current market whether you are selling OR buying.


To ensure that you receive these market updates on a regular basis, please contact your
real estate professional or contact Susan Kraemer at (623) 229-6167

Monthly market report 0612

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Monthly market report 0612