The temperatures are not the only thing that are rising in the Phoenix metro real estate market. Yes, temperatures are at 100 degrees and rising. Home Sales also are HOT in the $100K price range. Homes under $150K in decent areas are going very quicklyÂ with multiple bid situations common. Prices are going up also.
The Arizona Republic reported on June 16, in an article by Lesley Wright:Â http://www.usatoday.com/USCP/PNI/Business/2012-06-16-PNIbiz-wv-regional06162012Republic1BusinessCPNIBrd_ST_U.htmÂ ,Â "For real-estate agents, homebuyers and especially homesellers, the West Valley is burning up, especially for homes less than $150,000.Â 'West Valley is really, really a hot market,' said Chris Heagerty, director of the Arizona Regional Multiple Listing Service Inc.Â That heat is strongest in the market for homes of $100,000 to $150,000, forcing new buyers to move to higher ranges."
This has givenÂ hope andÂ light at the end of the tunnel for traditional home sellers as they finally see the number of distressed propertiesÂ lessening and prices increasing.Â The Phoenix metro areaÂ is leading the nation in price increases year of year for the past quarter.
Ms Wright, reports that "Distressed properties, those houses owned by people facing foreclosure or short sales, still make up the bulk of sales. But ARMLS statistics show they have decreased in metro Phoenix to about 43 percent in May. That's a drop compared with their high-water mark in September 2010, when distressed properties made up 74 percent of homes sold."
Short sales are becoming the "new" foreclosure.
Ms. WrightÂ further reports, "An equally significant number is the ratio of short sales -- in which a home sells for less than is owed on its mortgage -- to foreclosure. ARMLS statistics show that metro Phoenix had 2,245 short sales in May compared with 1,423 foreclosures. Short sales increased that month by 5.5 percent over April figures, while foreclosures decreased by 1.9 percent."
Mortgage rates remain at the lowest levels since 1971, helping to fuel the resurgence of the Phoenix real estate market.
Jeff Masich, Realtor