It looks like the market is finally showing signs of slowing down. The sky isn’t falling, we’re just going from three consecutive months of 8000+ homes sold to 7040 for the month of August. Based off the numbers, it looks like many of the cash buyers are stepping back either because the bottom of the market has seen a sharp increase in prices or maybe they’re going back to the stock market. Either way, it’s certainly good news for many of the first time home buyers.
August Inventory of Homes Available in Phoenix
Another interesting trend is that the overall number of homes available for sale have continued to go down, despite the number of homes sales has slowed just a bit. With the number of sales going down, though, monthly inventory naturally goes up. Overall in Phoenix metro, we have gone from 4.59 months of inventory for July to 5.24 months in August. Across the board, most of the cities have increased by about a month. The exceptions would be Gilbert and Chandler, which have maintained the same level.
Status of Homes sold in August in Phoenix metro
Overall, we are seeing roughly 35% of homes bought in cash, 51% of are foreclosures, 18% are short sales, and 31% are traditional resales.
The next few months will be very interesting. Just like when down payment assistance ended before, there will be a crazy rush here. The deadline for the First Time Home Buyer Tax Credit is Dec 1. That means that anybody participating in the program needs to be in contract by October 16th at the latest if they’re going FHA. So imagine all the people bidding for homes in the first couple weeks of October. They will be competing very strongly against one another. I strongly suggest that if you are interested in this program, that you find something in the next couple of weeks. Or else, you may find yourself outbidded during the most critical stretch.
| Active | Pending | Sold | Inventory | |
| Tempe | 722 | 217 | 155 | 6.06 |
| Chandler | 1150 | 613 | 394 | 4.47 |
| Gilbert | 1212 | 681 | 449 | 4.22 |
| Scottsdale | 4182 | 762 | 488 | 10.13 |
| Mesa | 2450 | 1039 | 665 | 5.25 |
| Ahwatukee | 487 | 171 | 104 | 6.33 |
| Paradise Valley | 500 | 32 | 27 | 19.70 |
| Phoenix | 6962 | 3154 | 2070 | 4.89 |
| Maricopa County | 26037 | 10853 | 7040 | 5.24 |
We always see a slow down during the fall. We here in the Fort Worth market actually saw a great August and September looks to be even better.
The Dallas Real Estate market has been slow, but not like other states. The rental market is hot as well as foreclsoures here. I am getting a lot of first time home buyers that wantefd to use the $8000 tax credit.
Sarah´s last blog ..First Time Home Buyers – ACT FAST
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It will be very interesting to see how the First Time Home Buyer Tax Credit deadline affects the market. We should know by October 16th. The first two weeks in October could be very busy.
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