August Real Estate Market Report 2013

August Real Estate Market Report 2013

brought to you by Jeff Cameron

The Cameron Team HomeSmart

Watch Jeff’s video Real Estate Market Report to see what’s happening in today your neighborhood.

Hi! This is Jeff Cameron with The Cameron Team/HomeSmart coming to you live from McDowell Mountain Ranch in Scottsdale,Arizona.

It is August 2013, and we are going to discuss the real estate market here in Metro Phoenix, Scottsdale and McDowell Mountain Ranch.

Once we quickly cover the numbers, I want to spend some time explaining what we are seeing out there and how this pattern copies last year.

Then a quick moment on what will affect the market going forward.

Here are the numbers:

Available SFR

Metro Phoenix 13,030 +5.8%

Scottsdale 1,336

MMR 37

Tatum and Bell 10

 

Pending Homes

Metro Phoenix 9,523 -13%

Scottsdale 577

MMR 32

Tatum and Bell 12

 

New Sales

Metro Phoenix 5,470 -9.6%

 

Closings

Metro Phoenix 7,093 +1%

Scottsdale 498

MMR 29

Tatum and Bell 9

 

Average PPSF

Metro Phoenix $113.07 +23%

Scottsdale $192.19 +9.6

MMR $211.72 +11.4

Tatum and Bell $139.35 +17%

 

Available SFR

Traditional 11,864

Foreclosure 659

Short Sale 509

All 13,030

 

Pending

Traditional 5,681

Foreclosure 791

Short Sale 3,051

All 9,523

 

Closings

Traditional 5,580

Foreclosure 557

Short Sale 955

All 7,093

 

Average PPSF

Traditional $123.17 +14.6

Foreclosure $87.19 +16.3

Short Sale $82.99 +15

All $113.07

 

Market share by percentage:

Available SFR

Traditional 91.1%

Foreclosure 5.1%

Short Sale 3.9%

Pending

Traditional 59.7%

Foreclosure 8.3%

Short Sale 32%

Closings

Traditional 78.7%

Foreclosure 7.9%

Short Sale 13.5%

First, what happened last year. We bounced off the bottom set in August 2011 through June of 2012, on average 35%. But by the time we hit June/July of 2012 we saw inventory grow and new to the market home sellers started pricing up an additional 10-20% from the last sale. Buyers then pulled back and the market went flat until March/April. Let me qualify this with the fact this is what the numbers say and what I saw, but I also saw pockets break pattern. Some were late to the recovery, others still controlled by Short Sales and others still low inventory.

We are seeing the same pattern this summer. Let me explain through an example.

Let me use a $300,000 home as an example. Or one worth $300k in March of this year.

Price $300k multiple offers sells for $306-310k

Next month a similar home goes on the market at $310k and sells for $316,0000. This pattern continue s until this particular home is selling for around $330,000. It made a 10% jump in values over a few months.

Then, the next seller lists for $375,000. so does another and another. Or the next month or so. But none sell. The buyers have been watching this action on their portal. They know the homes are over priced. Now it takes price reductions to find the market. The buyers in turn see the reductions along with building inventory for their personal search. When this happens, the buyers no longer feel compelled to write full price offers.

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