Total re-sales in Maricopa County for May were 9,113! That’s 1,365 more than last month and 1,237 more than may 2012! REO closed was 806 which is 9% and short sales closed was 1094 which is 12%. Normal sales closed was 7214 which represents 79%. Pending inventory is down to 12,497. REO pending was at 1,017 which is 8% and short sales are at 4,132 which is 33% and normal sales pending at 7,349 which is 59%. Active inventory for Maricopa County is still dropping down to 11,960. REO active is 631 which is 5% and short sales are at 482 which is 4% and normal listings are at 10,849 which represents 91%! There is less than 2 months inventory in all but 3 cities now!!(Fountain Hills, Paradise Valley and Scottsdale)
So what does this mean for you? If you are a buyer, expect prices to continue to rise as the number of available homes for sale shrinks. You don’t have the luxury of “time to think about it”. Mortgage rates are still at historic lows, but they are creeping upwards. As the interest rates rise,
the amount of home you can afford diminishes. If you are lucky enough to find that home you have been looking for do not hesitate to make an offer that will get you the home. The steals and deals have been gone for two years now.
If you are a seller or a potential seller, now is a great time to put your home on the market. The shortage of inventory makes this a seller’s market. Anytime inventory levels fall below a 3 month supply it is considered a seller’s market. Of course you need to be reasonable on your asking price. If you price your home too high above the current market value, you will have very little chance of getting it sold. With the the internet, public information is easier to obtain than ever. Today’s buyer is tech savvy and does their research long before calling a REALTOR®. Tax records and sold property information can be obtained in a few keystrokes. Even if someone would entertain paying over market value for a home, it must appraise for the sale price to complete the transaction. The only exception to this would be a cash sale. Keep in mind that cash buyers are very business minded and most likely would not pay over market value.
In summary, we have what looks like a perfect storm. Great time to buy. Great time to sell.
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