Monthly Real Estate Market Report
August 1, 2012
Jeff Cameron
MRW Homes
Hello and welcome!
This is Jeff Cameron, Live in McDowell Mountain Ranch, in north Scottsdale. Its a beautiful August day! In case you were wondering, Yes, I skipped last month. It was very similar to the month before and this month.
Inventory is growing slightly as we go into the off season. With 10,589 single family homes for sale in metro Phoenix, up 4%. Please remember the last time we had inventory of single family homes for sale this low was August of 2005, 7 years ago. And we have experienced flash backs to that market, but not the craziness.
Pending homes are dropping too, with 14,659. A drop of 1.3% but this could be attributed to 2 factors. The first is the slow down in sales and second would be how quickly short sales are getting approved.
Single family home closings were down 17.5% at 6,144. This is due to a lack of inventory. I have so many buyers and nothing to sell most of them.
New sales for the month are at 5,691 which is actually up 2.3% from June.
New listings for the month at 6,095 and increase of 1.6% over June.
The average price per square foot is $91.89, up 50 cents or 5.5% from June. We seem to be building a new floor in the low 90’s. We still made a huge jump from the high 70’s at the beginning of the year and up 26.4% from last August first.
There is a 1.7 month supply based on closed homes and 1.9 month supply based on new sales.
In a nut shell we bounced off of last year’s bottom pretty strong, or one could say some homes were way over sold at the end of last year.
A properly priced home up to $600k is selling quickly in today’s market, many are setting new highs. But unlike the bubble, buyers are persnickety. The home must have the assets, views-condition-upgrades, to attract the higher prices.
I have a home closing this week that sold well over many comps of the same floor plan. We had an appraisal issue but sold over appraised value. I talked to another agent before listing. She had the same floor plan with a pool and listed $15k below us. I told what was happening suggested to get a bidding war going to get the Highest and Best Price. She said “the were happy with their price and fear the appraisal.”
Honestly, I have had several appraisal issues. Some have been down right pathetic, like a home that appraised for $325k after selling for $355k. My buyer lost nearly $1000 in appraisal and inspection fees. The home sold and closed for the $355k with another buyer.
I just experienced an appraiser using an outrageous value for a pool and spa. Had he used the numbers used on by another appraiser on a similar home closing this week we would have had no appraisal issues. But he didn’t. The buyer is “shocked” and walked. OK, we will find another!
That’s it for this month. This is Jeff Cameron with MRW Homes coming to you Live in McDowell Mountain Ranch.
Average price per square foot
Metro Phoenix is $91.89 up $.50 or 5.5% up 26.4% from August of 2011 a year ago
Scottsdale is $175.32 up 15.7% from August 2011
McDowell Mountain Ranch is $190.01 up 15.8% from August of 2011
Traditional sales metro Phones $107.50 up 9.4% from a year ago in August. This has no short sales or REO property.
Call or email any questions to
or 480-502-7699
Make it a wonderful day!
480-652-2004