We just received the most recent STAT Plus Quarterly Statistics report for the Phoenix area from the Arizona Regional Multiple Listing Service. It has some interesting statistics. If you would like a copy of this one page report, just let us know.
There has been a steady decrease in the number of homes for sale in the $30,000 to $100,000 price range. In the fourth quarter of 2011 there was an average of 4,742 homes available for sale each month. In the first quarter of 2012 this dropped to 3,688 and in the second quarter dropped to 2.760. In the third quarter, just completed in September the average was 2,383. This reflects what we have been seeing the market as prices rise – a dwindling supply of homes priced under $100,000. There has been high demand in this price range both from investors looking to turn the property into a rental or to fix and flip the property and from individuals looking to purchase first or second homes.
Home supply in the $100,000 to $250,000 price range has bounced around some but has remained at a more even level this year. In the fourth quarter of 2011 there was an average of 8,852 homes available for sale each month. In the first quarter of 2012 this dropped to 7,870 and in the second quarter dropped to 6.963. In the third quarter, just completed in September, there was an increase to 7,851 . The increase of supply is good news for home buyers in this price range who have had a frustrating year competing for homes with other buyers.
Home supply in some of the higher price ranges has not been as dramatically affected. In the third quarter the supply in the $250,000 to $500,000 price range was an average of 4,162 homes versus 4,353 in the fourth quarter of last year. In the $500,000 to $750,000 price range the third quarter average supply was 1,038 homes versus 1.161 in the fourth quarter of last year. Interestingly, there has been a decrease in the supply of homes priced between $750,000 and $1,000,000. The average monthly supply in the fourth quarter of last year was 650 homes. It was 590 homes in the third quarter of this year.
The number of distressed properties is down significantly. The inventory of homes being sold by banks as foreclosure properties is down by about 50%. The inventory of short sale homes for sale is about one-third of what it was last year at this time. The number of HUD homes is down by about 50% as well. This means that distressed properties make up a much smaller portion of the homes currently for sale than they have in past years.