Credit Suisse – Real Estate Market Report February 2012 for Metro Phoenix and Scottsdale

Credit Suisse - Real Estate Market Report February 2012 for Metro Phoenix and Scottsdale

Below is a report I received this week from Credit Suisse on the Metro Phoenix and Scottsdale real estate market.

This report on the real estate market is a survey of Realtors and what they are seeing on the street. The survey shows traffic at listings picked up in January.

Agents stated the reason was the lack of inventory. We continue to see inventory of single family homes in metro Phoenix and Scottsdale drop. This may end up slowing sales as buyers have nothing to choose from. Hopefully we will begin to see price appreciation. This will help bring more Traditional home sellers into the market.

I sold a home in McDowell Mountain Ranch last week to a buyer. It will be a new recent high sale for the floor plan in this subdivision. We were 1 of 3 buyers to look within hours of the home being listed for sale. My buyer and I recognized the value and put together a "clean full price offer." We secured the home. There is another offer in back up position. The appraisal came in at value yesterday and my buyers have now beat out the competition to purchase this home in Armonico at McDowell Mountain Ranch.

If you want to know more about the market or have any questions call me, Jeff Cameron at 480-502-7699

The Cameron Team at MRW Homes

Phoenix, AZ – Traffic Improves as Falling Inventories
Create Urgency in the Market
(7,259 single-family permits in 2010, 4th largest market in the country)
A shrinking inventory incites urgency in the market as buyers battle for fewer
homes. Buyer traffic met expectations for the second consecutive month in January, as
our traffic index came in at 53 (from 50 in December), in-line with a neutral reading of 50
(readings of 50 point to traffic meeting expectations). Agents heavily attributed the better
traffic in January to a shortage of homes available for sale. Inventory has been trending
lower over the past several months and has incited a great deal of urgency in the market.
One agent mentioned, “Buyers are once again competing for homes. There are multiple
offers for properties that are in good shape.  Buyers are even willing to wait out short
sales.” Another agent noted, “The lack of inventory is creating many multiple-offer
situations, leaving willing and able buyers looking and waiting for their next opportunities.”
Agents also highlighted that buyers believe prices have stabilized and want to get in now.
One agent mentioned, “My clients are beginning to think the market has hit bottom.”
Agents’ commentary suggests the mix of buyers consists of both investors and traditional
buyers.
Pricing improves in January. Agents indicated that prices were higher again in January,
as our home price index increased to 65 from 56 in December, above a neutral reading of
50 (readings above 50 point to sequentially higher prices). This is on the heels of the now
eleventh consecutive month of stable or lower inventories for the region. Our home listings
index came in at 80 from 77 in December, well above a neutral reading of 50, pointing to
lower inventories over the past 30 days (readings above 50). In addition, our time to sell
index came in at 76 from 65 in December,  pointing to a reduced time to sell (readings
above 50). We view the lower inventories and time to sell as positive indicators for future
pricing. However, we do remain concerned over shadow foreclosure inventory not
currently held for sale that could mitigate the positive impact of lower inventories.
Comments from real estate agents:
■ “The low-end of the market has very low inventory and is ultra-competitive.”
■ “Buyers are motivated by great affordability.”