Phoenix Real Estate – It’s a Sellers’ Market for Bank Owned Homes

Jonathan Dalton, Phoenix Real Estate AgentFull numbers and the map will come later today after my stomach (hopefully) has recovered from a hellacious bout of food poisoning.

We now have a sellers’ market in the REO world – 4,054 active listings with 910 closed sales over the preceding 30 days adds up to an absorption rate of 4.45 months. Five to six months is considered balanced, anything under is a sellers’ market.

Aggressive pricing has been the key, giving credence to my earlier statement that the foreclosures are going to lead us to the bottom one sale at a time.

Overall, the Phoenix real estate market has a 10.87-month absorption rate. Net inventory fell by nearly 700 homes at a time of year inventory’s usually on the rise, and there were 3,535 closed sales over the past 30 days.

I still don’t think we’re at bottom but I think we’re getting closer day by day.

[tags]Phoenix real estate, bank owned homes[/tags]

Jonathan Dalton

Jonathan Dalton is a 40-plus-year resident of the Valley and has been helping folks buy and sell homes since 2004. He can be reached at 602-502-9693 or info at allphoenixrealestate.com.

0 Comments

  • BawldGuy Talking 9 years ago

    I remember when a cousin suffered through food poisoning. He said he thought he was gonna die, and was afraid he wasn’t. 🙂

    Your observations on the REO stats seem reasonable. I’ve been watching Phoenix slowly but surely slip ‘n slide to this point. I’m thinking by the end of the year, if not sooner, they’ll have felt the mud hit their toes on the way to the beach, and dry ground.

    I also think ’09 could be a very ‘interesting’ year there.

    Your thoughts?

  • Milan 9 years ago

    I imagine that many banks still want to sell in less than 4.45 months though… but I like that theory, that the banks will help us all find the bottom of the market.

  • Jonathan Dalton 9 years ago

    The 4.45 months isn’t marketing time … it’s the amount of time it would take for all inventory to clear out at current sales pace if nothing else was added.

    I generally don’t look at days on market because I don’t feel it’s the most relevant statistic … often tells you less about the market than about the particular owner’s motivation or utter lack there of.

    Jeff – One of these days, maybe some folks will even listen you you … 🙂

  • BawldGuy Talking 9 years ago

    I forgot to include the BawldGuy caveat — my opinion plus my heavily armed Starbucks card will get us both coffee and cookies. 🙂

  • Milan 9 years ago

    Jonathan- Right. So the average days on market under that scenario might be 2.225 months, if the sales were spread out evenly over a 4.45 period, which is pretty reasonable.

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