October 2009 Market Update
Have you spoken to a buyer lately? Â More importantly, have you spoken with a REALTOR whom has worked with a buyer lately. Â More specifically a buyer looking to buy a foreclosure less than $300k. Â Chances are they are not happy and the agent working with them is plain and simply. Â They are TIRED of showing homes and putting in offers with not getting a single one in escrow. Â Why?Â Â I always get the argument, â€œhave you seen the NTS filed at county? Â There is no wayâ€¦blah blah blah.â€ Â Well, every person that says something to this degree is not currently in the market working with buyers or trying to buy. Â The recent numbers from Security Title for October verify the stress and hours of searching for that one home a buyer or buyerâ€™s agent is trying to find. Â Â There is no doubt we have seen NTRâ€™s filed. Â However, many of these are in the process of a loan modification or the short sale process. Â Likewise, Freddie and Fannie are allowing you to refinance if your loan is with them. Â Ask your mortgage broker!
The following synopsis is from Security Titleâ€™s numbers I am reviewing with you. Â LEADING the tight supply are FORECLOSURES. Â There is an average for Phoenix metro of .98 month supply. Â Let me quickly remind you what the â€˜TIPPING POINTâ€™ is: Â a supply of 6 months or less is a sellerâ€™s market. Â WE ARE, and HAVE been, in a SELLERS MARKET for FORECLOSURES for MONTHS. Â Check this number out: Â Anthem has a .4 month supply of foreclosures.
Following the restriction in inventory are short-sales. Â Short-sales have a 4.5 month supply. Â Chandler is leading the limited supply at 3.6 month supply with Goodyear and Queen Creek following respectively at 3.8 month supply.
Last but not least is the home owner with equity or the standard sale. Â The month supply of homes for this category range as high as a extensive BUYERS market in Fountain Hills with over an 18 month supply and Scottsdale with an almost 13 month supply to a fairly extreme SELLERS market in Avondale with a 2.3 month supply.