Buyers are out there!
Hi,
I usually wait until the begininning of a month to run statistics, but thought I would check some today. I have been quoting one key statistic this month, and that is that the inventory level in ARMLS at the end of January was at the lowest level since April of 2007. I have been saying that this is a great item, but only if it is sustained this month and beyond. Well as of this morning, the level has decreased further.
In addition, here are some key items to consider if you think no one is buying. As of this morning, (2/25/09), there were 11240 listings in escrow, either pending or contingent sales. Even if half of those close in the next 30 days we will see a continued increase in sales month to month. Even more telling are these numbers: 88 percent of those pending sales were distressed properties (REO's or short sales), and 87 percent were under $300K.
That may not be a good sign for the upper end of the market, but the key aspect is that these sales continue to lower the inventory level. If this trend continues we will see stabilization of pricing and a lot more people jumping off the fence. The down market will inevitably cause pent up demand. I believe the majority of current buyers are investors and first timers taking advantage of historically low interest rates and low prices. Time has shown that it is rare to have both of those together.
Regardless of whether you like the stimulus package, one key good item that will help continued sales is the tax credit for first time buyers. Now set at $8000 and now not repayable this will bring a lot of people into the market. Additionally, FHA limits are now at $346,250 in the Phoenix area, putting the majority of properties under FHA limits.
Let's hope that I can continue to bring you these positive stats!
Adam Tarr, Associate Broker
ABR,RSPS,ePro,CNE
RE/MAX Excalibur
Scottsdale, AZ
480-236-7374
adam@WeAreAZRealEstate.com