(“MLS Listings” are measured at one point in time, usually the 15th day of the current month. “Median Price” of homes sold and the total number of home “MLS Sales” are for the entire preceding month.)
Phoenix Real Estate Market Analysis
In May, the median single family home sold price in the Phoenix area MLS was $137,900, up from $135,000 in March and April. A year earlier, in May 2009, the price was $122,000.
I can see prices tapering off for a few months as demand goes limp with the end of the $8,000 home buyer tax credit in April. (Most Arizona home sales closed in May and many closed in June will qualify for the tax credit.)
Sales (blue line)
Surprisingly, the number of Phoenix area single family homes sold in May (7,675 homes) was less than last May (8,287 homes). And that’s despite the $8,000 first-time home buyer tax credit this year.
May was the first month this year when the number of Phoenix area single family homes sold via the MLS were less than the same month in 2009.
The median price, as you can see above, was 13% higher this year which would discourage some sales but I’m still surprised. The sales in May were good but sales were higher in May 2004, 2005 and 2009.
Listings (red line)
The number or single family homes listed for sale in metro Phoenix has been pretty steady since February ranging from about 33,000 to 34,000. The number of listings tends to fall in strong Springs but didn’t this year because an unusually large number of homes hit the market in March and April.
Although we apparently have a lot of supply of Arizona homes ready to hit the market, we are by no means in a buyer’s market.
We are definitely in a normal market with a 4.4-month supply of homes listed for sale in May. A year ago in May 2009 we had a 4.2-month supply of Arizona homes listed for sale. (I consider a 4-month to 6-month supply of Arizona homes a “normal” market.)
The Phoenix area real estate market is normal.
Sure, it’s hard to sell a home but that’s because of low priced competition from short sales and bank-owned homes, it’s not because homes aren’t selling.
And sure, it can be a pain in the neck to buy an Arizona short sale or an Arizona bank-owned home but homes are selling at a normal pace.