Anthem and Maricopia County Real Estate update

Here are some interesting sales facts for the Maricopa County region and Anthem.

The Arizona Multiple Listing Service (ARMLS) releases reports on home facts covering the whole Maricopa County region.   For January 2014, our distressed sales are down.  Just 16% (690 units) of the total were distressed; we last saw that percentage in September 2007.  Traditional sales now account for 61% of the market up from 43% a year ago.

Out of state sales in December, 2013, were a total of 17.3% down from 20.3% in December 2012.  California leads the out of state buyers, with Canada, second, followed by Washington, Colorado, and then Illinois.

In the annual increase of price per square foot, Anthem is in 23rd place with an average of 20% increase bringing the average to $120 a square foot in the area.

The price point for homes sold is strong in the under $250,000 price range with 76% of the overall market.  In December, 2013, 48% of the contracts were homes under 150k, and another 28% between $150-250k ranges.  9% of the market was over $400k, with 2% of that total coming from homes greater than $750k.  Homes under $250k are selling at a good pace.  Our current inventory is at a 5.93 month supply which is a buyer’s market.

Recently, Michael Orr from ASU School of Real Estate stated that the real estate market here in Phoenix has cooled dramatically since July, 2013.  This is because most of the investor demand has fallen off due to the lack of ability to make a profit.  Investors typically demand homes under $150,000.

The biggest sector of the market experiencing a slowdown is the move up market which is homes $150,000 to $500,000.  This is great for buyers as the weaker demand is good.  However, there are currently many over ambitious asking prices.   Since there is not much current distress for most sellers, they will have patience in waiting to meet their price, or simply remove their homes from the market.   Buyers will start low, and walk away if their price is not met, since there are many more alternative properties to consider.  Which is building into a strong buyers’ market.

On the flip side the luxury home market  (over $750,000)is doing relatively well due to increased financing available now due in part to the good returns and strong stock market performance of the past year.  However, it is very volatile and can change quickly.