Ahwatukee – Real Estate Market Shows More Signs of Improvement
Last week we reported that Active listings in the Ahwatukee MLS had dropped 14.9% to 464 properties. Ahwatukee Active listings today have dropped another notch to 458 properties. As we indicated last week, one of the basic laws of economics states that a steady demand and a falling supply usually extrapolate to an increase in prices.
Recent articles in the The Phoenix Business Journal have also reported good news on the residential real estate front. By their count there were 9,933 Phoenix-area sales transactions that closed in March which would mark the most sales in 66 months. Our search of the ARMLS records this morning show 10,012 total Phoenix residential sales in March and 8,359 sales of single family properties. By either tally it’s the fifth highest sales month since 2001 for the Phoenix market.
In last weeks post, we also reported that prices had dropped 12.9%. The Phoenix Business Journal in a separate report cited a Corelogic (Santa Ana, Calif.-based CoreLogic (NYSE: CLGX)) study indicating that Phoenix residential property sale prices had fallen 11.2% in February compared to February 2010. According to Corelogic this represented the second highest drop for any reporting area in the country. Only Idaho had a larger drop in prices (-14.6%). As aside, the Corelogic study did state that excluding distressed sales, Phoenix prices fell 5.4 percent.
So, residential sales volumes are up dramatically in the Phoenix market. Inventories have dropped. Prices are at historic lows!
Let me see, high numbers of sales = High Demand.
Dropping inventories = Reduced Supply.
High Demand + Reduced Supply + Historic low Prices………………I am not an economist but this looks like a formula for Increasing Prices.
High Demand + Reduced Supply + Historic low Prices = Higher Prices!
Could we be at the beginning of a recovery in the Phoenix residential housing market?
Only time, the banks’ grey or black inventories, political unrest in the Middle East, rising oil prices, the United States Budget Crisis and other various and sundry minor, local, national and global factors will tell.
One thing for sure, “It Will Be Interesting.”