Phoenix sales plunge 34% while inventory rises 800% (now at 48,579 for sale units)
housingpanic.blogspot.com
Lereah knows things are rapidly deteriorating or he would not be so contradictory. But the three things that probably worrying him most are inventory, inventory, and inventory
azcentral.com
Home resales continue to slow; prices holding
Glen Creno
The Arizona Republic
Jun. 9, 2006 12:45 PM
The crucial selling season for metropolitan Phoenix's housing market got off to a less-than-resounding start last month as sales of existing homes plunged below last year's levels, posting their worst May performance since 2003.
But prices held steady at record levels as the market became more dominated by move-up buyers. They have more spending power than the first-timers who are having trouble finding houses they can afford, said Jay Butler, head of the Arizona Real Estate Center at Arizona State University Polytechnic.
There were 6,870 existing houses sold in the Valley in May, down 34 percent from the 10,425 resales in May 2005, Butler said. Comparisons to last year's sales numbers can be misleading since the region was in the midst of a selling frenzy propelled by investors. advertisement
Still, Butler said last month's total was the lowest for May since the 5,890 sales racked up in May 2003. The month traditionally kicks off summer selling, and analysts are watching the season carefully this year to gauge how much demand there is for the more than 43,000 houses listed for sale in the state, most in the Phoenix area. That total is a record and has been climbing for months.
The typical Valley resale home sold for $265,000 last month, equaling a record for the area and up $100 from April. But after the fast run-up last year, prices have stayed more or less flat since September, when the median resale home sold for $263,000. Last year's May median price was $235,000.
There are several implications for the stalled prices. The area is less attractive to investors looking for fast gains in value. That's bad news for them but good for regular buyers who don't want to compete with investors and who criticize investors for creating extra demand that pushed prices so high.
"If home prices continue to be stable or even decline in some areas, potential buyers may be increasingly reluctant to make the purchasing decision, because future appreciation is much more uncertain,'' Butler wrote in his report. "Further, current owners, especially investors, may want to bring homes to a good market in order to lock any current appreciation.'' |
