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Greater Phoenix Area May Real Estate Market Update
Read on for a snapshot of what went on in the Phoenix area real estate market in May.
Enjoy!
What specifically happened last month/quarter in this market?
A total of 9,980 resale homes sold in Maricopa County in May, up 9.7% from April and 38.4% higher than in May 2008. Of the homes sold, 30% were foreclosures, slightly higher than the share of foreclosures in April (27%) but much lower than the share in May 2008 (40%).
“The slowdown [in foreclosure activity] can primarily be attributed to the various hiatus programs that lenders instituted, while awaiting the new loan modification and refinancing programs from the federal government,” according to Jay Butler, director of Realty Studies in the Morrison School of Management and Agribusiness at Arizona State University’s Polytechnic campus.
The median price of homes sold in Maricopa County in May was also up – 2.5% – after falling slightly (1.4%) in May. The median price of $135,000 is 32.8% lower than the median price in May 2008.
Foreclosed homes represented a good deal for buyers in some Valley cities – particularly in Tempe and Chandler, where the median price of a foreclosed home was 9% and 3% less than the price of a traditionally-sold home, respectively.
Will the market conditions continue or will they change?
“Historically, May is one of the strongest months in the resale home season that usually lasts until August,” said Butler. “During the resale season, sales and median prices tend to increase, so some improvement in the local housing market would not be unexpected.”
“There is increasing hope that the housing troubles are beginning to ebb, and the bottom, along with a potential recovery, are in sight,” said Butler. “However, many problems continue to exist that could hinder the timing of any recovery. The impact of foreclosures on the market has been the primary concern of the last year and will continue to be in the coming months, especially with the end of many hiatus programs and the weak job market. The fundamental mitigating factor could be the various existing and potential loan modification programs that will allow households to save their homes.”
What are the bright spots in the Greater Phoenix real estate market?
Median prices of traditionally-sold homes rose in many Valley cities, including Phoenix (3%), Chandler (1.8%), Tempe (6%), El Mirage (4.6%), Glendale (2.6%), Sun City (7.9%), and Surprise (3.8%). Prices fell, in contrast, in Scottsdale (down 7.4% in May after rising 6.7% in April), Gilbert (5.6%), and Mesa (down 1.8% in May after rising 2.3% in April). In Maricopa County overall, the median price of traditionally-sold homes rose 4% in May.
The number of homes traditionally sold (as opposed to foreclosure sales) in May compared to April also increased in most Valley cities – up 1.7% in Phoenix, 6.1% in Scottsdale, 17.2% in Chandler, 8.3% in Gilbert, 69.2% in Tempe, 7.7% in Glendale, 17.6% in Peoria, and 4.6% in Maricopa County overall.
What’s happening in the Greater Phoenix condo market?
The number of townhouses and condos resold in Maricopa County rose 13.6% to 1,085 homes in May after rising 6.1% in April; sales were 20.6% higher than in May 2008. Sales were up in many individual cities as well – 18.6% in Phoenix, 33.3% in Chandler, 5.9% in Mesa, 80% in Tempe, 57.1% in Glendale, 33.3% in Peoria and 20% in Sun City.
Median prices were basically flat in Maricopa County overall, but rose in many individual cities – 2.2% in Scottsdale, 13.4% in Gilbert, 7% in Mesa, 18.9% in Tempe, and 3.4% in Surprise. Prices were down in Phoenix (6.8%), Chandler (10.2%), Glendale (15.5%), Peoria (33.5%), and Sun City (9.9%).
Enjoy!
What specifically happened last month/quarter in this market?
A total of 9,980 resale homes sold in Maricopa County in May, up 9.7% from April and 38.4% higher than in May 2008. Of the homes sold, 30% were foreclosures, slightly higher than the share of foreclosures in April (27%) but much lower than the share in May 2008 (40%).
“The slowdown [in foreclosure activity] can primarily be attributed to the various hiatus programs that lenders instituted, while awaiting the new loan modification and refinancing programs from the federal government,” according to Jay Butler, director of Realty Studies in the Morrison School of Management and Agribusiness at Arizona State University’s Polytechnic campus.
The median price of homes sold in Maricopa County in May was also up – 2.5% – after falling slightly (1.4%) in May. The median price of $135,000 is 32.8% lower than the median price in May 2008.
Foreclosed homes represented a good deal for buyers in some Valley cities – particularly in Tempe and Chandler, where the median price of a foreclosed home was 9% and 3% less than the price of a traditionally-sold home, respectively.
Will the market conditions continue or will they change?
“Historically, May is one of the strongest months in the resale home season that usually lasts until August,” said Butler. “During the resale season, sales and median prices tend to increase, so some improvement in the local housing market would not be unexpected.”
“There is increasing hope that the housing troubles are beginning to ebb, and the bottom, along with a potential recovery, are in sight,” said Butler. “However, many problems continue to exist that could hinder the timing of any recovery. The impact of foreclosures on the market has been the primary concern of the last year and will continue to be in the coming months, especially with the end of many hiatus programs and the weak job market. The fundamental mitigating factor could be the various existing and potential loan modification programs that will allow households to save their homes.”
What are the bright spots in the Greater Phoenix real estate market?
Median prices of traditionally-sold homes rose in many Valley cities, including Phoenix (3%), Chandler (1.8%), Tempe (6%), El Mirage (4.6%), Glendale (2.6%), Sun City (7.9%), and Surprise (3.8%). Prices fell, in contrast, in Scottsdale (down 7.4% in May after rising 6.7% in April), Gilbert (5.6%), and Mesa (down 1.8% in May after rising 2.3% in April). In Maricopa County overall, the median price of traditionally-sold homes rose 4% in May.
The number of homes traditionally sold (as opposed to foreclosure sales) in May compared to April also increased in most Valley cities – up 1.7% in Phoenix, 6.1% in Scottsdale, 17.2% in Chandler, 8.3% in Gilbert, 69.2% in Tempe, 7.7% in Glendale, 17.6% in Peoria, and 4.6% in Maricopa County overall.
What’s happening in the Greater Phoenix condo market?
The number of townhouses and condos resold in Maricopa County rose 13.6% to 1,085 homes in May after rising 6.1% in April; sales were 20.6% higher than in May 2008. Sales were up in many individual cities as well – 18.6% in Phoenix, 33.3% in Chandler, 5.9% in Mesa, 80% in Tempe, 57.1% in Glendale, 33.3% in Peoria and 20% in Sun City.
Median prices were basically flat in Maricopa County overall, but rose in many individual cities – 2.2% in Scottsdale, 13.4% in Gilbert, 7% in Mesa, 18.9% in Tempe, and 3.4% in Surprise. Prices were down in Phoenix (6.8%), Chandler (10.2%), Glendale (15.5%), Peoria (33.5%), and Sun City (9.9%).
Tags: arizona, chandler, conditions, condos, county, estate, foreclosure, gilbert, glendale, goodyear
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