The number of distressed sales (short sales and lender owned 'REO') as a percentage of total sales are continuing to decline in Maricopa County through March 2013. This is good for the market as traditional sellers are beginning to become more confident that they do not have to compete with lower priced distressed homes.
The result is continuing price increases in homes being sold in Maricopa County.
Per Rob Clang of Security Title, "Total re-sales in Maricopa County for March 2013 were 8,038.Â (Lender owner) or REO closed totaled 854 which is 11% and short sales closed was 1,195 which is 15%. Normal sales closed was 5,990 which represents 74%." Normal or traditional sales at 74% is a healthy trend that is expected to continue. Mortgage rates remaining near historic lows also help bring stability to the Phoenix metropolitan area real estate market.
Mr. Clang further stated, "Pending inventory is up to 13,710. REO was at 1,300 which is 9% and short sales are at 5,023 which is 37% and normal sales pending have overtaken short sales pending for the third straight month at 7,388 which is 54%. Active inventory for Maricopa County is down to 12,948. REO active is 750 which is 6% and short sales are at 574 which is 4% and normal listings are at 11,626 which represents 90%! There is less than 2 months inventory in all but 5 cities!" Active inventory is defined as those homes available for sale without being under contract. Pending meants that a contract has been accepted but the homes has not yet closed.
Stability in the market price is expected this coming year.
Jeffrey Masich, Realtor, GRI, MBA HomeSmart Scottsdale, Arizona http://ArizonaHomesLand.com