Overall, inventory is staying flat to decreasing. However, the number of REO and short sales are increasing. Early reports are suggesting that September and October will have a higher amount of foreclosures. To make matters worse, it has become tougher to get loans especially for high end homes. This will continue to put downward pressure on home prices. The good news is that homes priced well are receiving multiple offers and are selling quickly. This is especially true for homes below $200K. In this price range, cash buyers are a big driver in the market.
September 2008 Phoenix & Scottsdale Ariozna Real Estate Update:
- Overall sales are off ~5% for the year as compared to 2007. Sales have picked up this summer. The volume of sales is equal to 2000. According to the Case Schiller update, June Vs May prices are -2.6% and 2Q'08 vs. last year is -27.9%. The good news is the declines are slowing.
- Solds dropped in August (5,834) compared to July (5,985). Historically, September - February is the slower part of the year eg down about 20% to 30% compared to peak buying season.
- September might see an increase in solds as FHA rules change and buyers rush to purchase a home before the rules change. The new change starting October 1 will not allow FHA buyers to receive money for the down payment of closing cost from the seller.
- Interest rate for the 30 year fixed is 5.73% per http://www.bankrate.com/. Rates have dropped with the government take over of Freddie Mac and Fanny May
- Homes under $350K are moving at about 14% inventory per month. For August, 85% of homes sold came from this price range.
- Homes from $350K to $1 Million are moving at 6% inventory per month. The lower rate of solds is explained by fewer buyers and harder to get financing.
- High end homes had a small uptick in July but dropped in August. Luxury home Solds are about 2% inventories per month. This equal about 50 months inventory or around 4 years.
- REOs and short sales account for 54% of solds. However, they only account for 29% of the inventory. Both percentages are rising.
I am Realtor with WestUSA. I have completed deals from entry level housing to million dollar homes. I keep informed about the real estate market both locally and nationally.
Excellent Customer Service: Listening to my client's needs, requests and requirements. Ensuring you feel comfortable about the transaction which means no pushy sales. Keeping customers updated on their comps and listings in their area. Returning phone calls and emails in a 24 hour time frame. Educating my customers on the process, paper work, and current market. Sharing my experience as a home owner, investor, and landlord. Requiring professional pictures & virtual tours for all listings to maximize exposure. Utilizing both the MLS and Realtor.com to increase interest in the property. Possessing the skills, training and experience to negotiating a solid deal.
More Information:
Please see my web site at http://smileytrust.com/ for more information and my contact information.
No comments:
Post a Comment