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Here is the Market Report for the end of December, 2011.  The market continues to shift and 2012 promises to be a very competitive year in Real Estate.  Prices are on the rise and Inventory is declining.
 
Closed Sales Report Analysis:

Sellers:
 As inventory continues to decrease, the number of closed sales continues to grow.
 The month of December saw a 9.2% INCREASE in the number of closed units that follows a 5% DECREASE in November.  For sellers, this means that buyers are still very, very active in today’s market.  New home builders continue to ramp up their inventory to provide options to buyers so sellers need to continue to monitor market activity.
Buyers:
 Buyers need to pay very close attention to this statistic.  The increase in the number of closed sales is definitely related to the shrinking inventory – buyers are anxious to buy in a market that brings much competition. We continue to see multiple offers on high-demand properties, and in some cases, buyers need to pay more than list price in order to be the successful bidder.  Buyers MUST carefully work with their real estate professional to understand the market AND to understand how they can compete with the market demand and other buyers who may be in a financial position that is more appealing to the seller.

Distressed Sales Analysis:

 December statistics saw bank owned/foreclosure sales DECREASE by 2.3%, short sales increase by 2.5%, and traditional sales remain the same when compared to the month of November.

 This statistic means that the competition from foreclosure properties decreased while traditional sales from sellers with equity increased. Sellers and buyers need to monitor this trend to see how the market continues to respond to the current inventory.

Average Sales Price Analysis

Sellers:
 With the decrease in inventory, it should come as no surprise that home prices are now on the rise.  December saw an increase of 1.5% in price over the prior month.
 The average increased from $165,881 to $168,365.  Although this is very good news for sellers, sellers need to remain cautious as they see the impact that appraisals and final loan underwriting have in validating these increases.
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Buyers:
 For buyers, it is important to be careful about this shift in the price of homes.
 This increase means that buyers have 1.5% less buying power than they did in the prior month.  Although we have no idea what will happen in future months, the shrinking inventory could provide even more competition for homes on the market, which could result in even higher home prices.  More than ever, you need to work with your real estate professional to make sure you have the best possible information regarding the market value of homes and to carefully monitor this trend to see how it will impact the availability, pricing, and terms associated with purchasing a home.
 

New Listings Analysis

Sellers:
 All of the stars are lining up for an even more competitive real estate market in the Phoenix metro area.  November saw an 11.6% drop in the number of new listings entering the market; December saw a 14.6% drop over the month of November.  Only 6,485 homes entered the market last month, by far the lowest number in the 36-month reporting period. At a time when buyers are competing to find a home, this number means they will have even fewer choices than in the prior months.  However, sellers should monitor this new inventory to see how it might impact the sale of their home.  In this great market, it is even more important that sellers need to make sure they remain as the top choice for active buyers in the marketplace.  If your home is not selling in this aggressive market, it is more than likely a pricing issue – buyers are still looking for the best value possible.
Buyers:
 Buyers pay attention! November & December saw a dramatic drop in the number of new inventory entering the market.  This is more than likely due to the drop in foreclosed homes becoming available. More than ever, it is essential that you spend time with and listen to your real estate professional to develop your strategy for succeeding in a market that is constantly changing.
 Be prepared:  a continued decrease in new listings entering the market could present challenges for finding your next home.

The numbers above represent the entire Phoenix MLS.

Would you like to know what is
happening in your neighborhood? 
Would you like to know the value of your home?
Do you need help deciding whether to sell or not or would you like to know if now is the right time to buy?

 I would be very happy to get you that information.  Just e-mail or call me!

I am happy to sit down with you to discuss your specific situation.