Phoenix Area Real Estate Sales Remain Strong

It's been quite a while since I posted to this blog...a trip back home (Milwaukee) to be with my Mother during surgery for cancer of the esophagus and then some R & R before I hit the real estate ground running again...BTW - Mom is recovering very well and the doctor says they got all the cancer...so that is a blessing. No one can replace Mom!

Anyhow, down to business. The monthly statistics for sales of homes in the Phoenix area (primarily Maricopa County) are in...and sales for August 2009 exceeded sales of August 2008 by approximately 45%. We sold 7,076 homes this year compared to 4,875 a year ago August. That continues the trend we've seen since the beginning of this year in which our inventory of homes has dropped from around 54,000 to 31,226 active listings and 37,757 which includes active listings with contigencies (a/w lender approval, etc.). So do the math, and what does that tell you? The supply of homes is dwindling and will continue to do so for the foreseeable future.

What's the reason for all these sales during a time when people are losing their jobs, businesses are shutting down, etc.? Well, one of the main reasons is affordability. While we continue to sell more homes, a lot of that is due to the lowest prices we've seen in the last decade and interest rates that are the lowest since the 50s. There's also the first time home buyers tax credit of up to $8,000. So you can buy a home for $80,000 and Uncle Sam will give you $8,000 cash back after you close.

And as I've mentioned in previous blogs, financial media outlets like Forbes have rated Phoenix as the #2 best buy for a home in the nation's largest metro areas based on current and future growth trends.

Of the 7,076 homes sold last month, 93% were priced up to $399,999; 51% were bank-owned and 19% were short sales. So while affordability is good, there's the unfortunate flip side where people are losing their homes due to foreclosures or short sales. No matter what your situation, this is the reality at present.

If you'd like more information on a specific zip code, let me know and I can get that information for you.