My apologies for not providing an inventory update but, as at least my mother has been able to surmise, it’s been a very busy week.
I want to share with you two numbers … 2.07 and 3.61.
The first is the absorption rate for bank owned homes in the city of El Mirage, which more or less is the West Valley’s ground zero for REO properties. Of the 103 sales in El Mirage over the past 30 days, all but nine of them were of bank owned homes. It’s the bulk of what’s for sale – just over half of the homes there are foreclosures – and it’s what people are looking for.
As for the latter number, that’s the overall absorption rate for El Mirage as a whole. As for the absorption rate for non-bank owned properties? That’s right around 20 months. Which isn’t to say it’s impossible. But it does tell you that if you’re trying to sell real estate in El Mirage, you better be priced with the foreclosures.
The pricing picture in El Mirage is pretty predictable …
Now, here’s the flip side of life in El Mirage … rents for a basic 3 bedroom, 2 bathroom home are in the low to mid $700s. Homes can be purchased in the $60s. What does the math tell you about that situation?
Overall, inventory in the Phoenix real estate market is falling. As of a few minutes ago there are 35,085 single-family detached homes for sale in Maricopa County, down just under 800 from two weeks ago. Sales over the preceding 30 days were at 4,023, which is about 300 more than the report two weeks back.
The Phoenix real estate market’s absorption rate is 8.72 months.
In the bank owned arena, inventory in the Phoenix real estate market stands at 8,870 homes, a drop of 500 homes. And sales increased to 2,762 from 2,547 two weeks back for an absorption rate of 3.66 months of inventory.
No, we haven’t reached the bottom especially from a pricing standpoint. But let me tell you folks, we’re a lot closer to the bottom in some areas than many might think.
As always, the below table has the numbers from the various cities and towns in the Phoenix real estate market. And also as always, all data is from the Arizona Regional MLS and is deemed reliable but not guaranteed.
[tags]Phoenix real estate, bank owned homes[/tags]