Phoenix Home prices continue to decline
http://www.billgemmill.com/blog/articles/14/1/Phoenix-Home-prices-continue-to-decline/Page1.html
Bill Gemmill
REALTORRealtor
By Bill Gemmill
Published on 02/12/2009
Phoenix median home prices continued their decline in Jan 2009 falling to $136,000 from a high of $243,000 just a year earlier. December 2008 median price in the valley was at $143,000. This trend is expected to continue for at least a portion of 2009.
Phoenix median home prices continued their decline in Jan 2009
falling to $136,000 from a high of $243,000 just a year earlier.
December 2008 median price in the valley was at $143,000. This trend
is expected to continue for at least a portion of 2009.
Supply of homes on the market in Jan 2009 was at about 53,368 total properties, with only 3,590 sales in the same month. There were also an additional 2,488 builder spec homes sitting ready to be sold in the valley last month. That translates into a 10.5 month supply of homes! The large numbers of homes on the market are being fueled by large numbers of foreclosures in the valley. Lender owned (homes that have already gone through the foreclosure process) accounted for almost 25% of the available homes last month, and short-sales/pre-foreclosures accounted for another 23% of the total available homes. The average home sold in Jan 2009 sold for 5.25 percent less than it was listed, and the average size of the sold homes was 1,961 square feet. The average price of sold homes varied by community, as an example in Surprise the average of Jan 2009 homes sold was $156,000, whereas Scottsdale same month average was $478,400.
New Homes (builder business) continued its decline in 2008 as closings went from 9,626 in 2007 down to 5,297 in 2008 with the amount of lots delivered falling from 24,573 in 2007 to 14,525 in 2008. Good news is that the builders have slowed down new construction with new home starts falling from 5,019 in 2007 to 1,881 in 2008. For those of you in the valley used to seeing a sea of new home construction in most areas, the change has been dramatic. Only 1,881 new homes in a year in Greater Phoenix is a sign that the times have changed! The amount of new home subdivisions and active builders also continues to fall. The issue now for builders .... cost to build! In most instances the builder cannot build a new home today that competes with the current re-sale home prices. Why would buyers purchase a new home when they can buy a re-sale down the street for a lot less money?
Vacant lots are not doing any better than homes, with the inventory of unsold lots going from 72,138 at end of 2007 to 74,916 at the end of 2008.
Supply of homes on the market in Jan 2009 was at about 53,368 total properties, with only 3,590 sales in the same month. There were also an additional 2,488 builder spec homes sitting ready to be sold in the valley last month. That translates into a 10.5 month supply of homes! The large numbers of homes on the market are being fueled by large numbers of foreclosures in the valley. Lender owned (homes that have already gone through the foreclosure process) accounted for almost 25% of the available homes last month, and short-sales/pre-foreclosures accounted for another 23% of the total available homes. The average home sold in Jan 2009 sold for 5.25 percent less than it was listed, and the average size of the sold homes was 1,961 square feet. The average price of sold homes varied by community, as an example in Surprise the average of Jan 2009 homes sold was $156,000, whereas Scottsdale same month average was $478,400.
New Homes (builder business) continued its decline in 2008 as closings went from 9,626 in 2007 down to 5,297 in 2008 with the amount of lots delivered falling from 24,573 in 2007 to 14,525 in 2008. Good news is that the builders have slowed down new construction with new home starts falling from 5,019 in 2007 to 1,881 in 2008. For those of you in the valley used to seeing a sea of new home construction in most areas, the change has been dramatic. Only 1,881 new homes in a year in Greater Phoenix is a sign that the times have changed! The amount of new home subdivisions and active builders also continues to fall. The issue now for builders .... cost to build! In most instances the builder cannot build a new home today that competes with the current re-sale home prices. Why would buyers purchase a new home when they can buy a re-sale down the street for a lot less money?
Vacant lots are not doing any better than homes, with the inventory of unsold lots going from 72,138 at end of 2007 to 74,916 at the end of 2008.