Within the next handful of weeks, we’ll likely know the depth of the Phoenix real estate market’s recovery. Many signs appear to point to the month of June as the time when, if there is shadow inventory to be found, it will hit the market.
In the interim, the mere fact the Phoenix real estate market seems to be bucking some national trends is rather encouraging.
According to the National Association of Realtors, distressed sales accounted for 28 percent of April sales (17 percent were foreclosures and 11 percent were short sales), down from 29 percent in March and 37 percent in April 2011. Foreclosures sold for an average discount of 21 percent below market value in April, while short sales were discounted 14 percent.
Not so here in Phoenix, where foreclosures over the past six weeks have made up less than 19 percent of the 11,573 sales according to the Arizona Regional MLS. And it has been some time since there was a significant difference in the sales prices of distressed and non-distressed properties, condition notwithstanding.
The average price for non-distressed properties declined 1.5 percent from March to April, while the average price for short sales dipped 1.7 percent. For damaged REO the average price fell 1.4% and for move-in ready REO the average price slipped 0.3 percent.
Again, there’s little correlation between the price for homes for sale in Phoenix and elsewhere in the country; average prices have been on the rise for the past couple of months and have been soaring (comparatively speaking) over the last month to six weeks.
There’s no question that there still are issues to be worked out in the housing sector on a national basis. But here in Phoenix, the notion that real estate is local is alive and well.