The sizzling summer continues to sell homes. The trend of homes flying off the shelves remains the same as we have had three straight months of 8000+ homes sold. Phoenix continues to pace the race with its inventory going down to 3.9 months. Gilbert is a close second at 4.2 months.
July 2009 Inventory of Homes Available
11531 pending homes sales in May led to 8291 homes sold in June. And likewise, 11638 pending homes sales in June led to 8009 homes sold in July. That is a 72% and 69% closing ratio respectively. Those numbers in themselves aren’t all that high, but that indicates that we are no longer having the problems of financing fallouts like we did last year. We also saw 2859 homes bought in cash for the month of July, which means that we are still seeing 36% of the homes being bought in cash.
Status of Homes for the month of July
| Active | Pending | Sold | Inventory | |
| Tempe | 769 | 195 | 171 | 5.64 |
| Chandler | 1233 | 561 | 411 | 4.36 |
| Gilbert | 1238 | 667 | 454 | 4.20 |
| Scottsdale | 4280 | 679 | 566 | 8.76 |
| Mesa | 2462 | 975 | 784 | 4.38 |
| Ahwatukee | 505 | 158 | 122 | 5.43 |
| Paradise Valley | 499 | 35 | 26 | 20.54 |
| Phoenix | 7081 | 2985 | 2583 | 3.90 |
| Maricopa County | 26443 | 10349 | 8009 | 4.59 |
I’ve personally seen several new homes on the market. According to Cromford they are rising at an alarming rate. Much faster than in March when we had the most homes on the market. I think August will be a big month for investors and possibly the best month to buy a home.
I worry about how things might change after the first time homebuyers tax credit ends. What are your thoughts?
Not really too worried because most of these houses are currently bought up by investors. The volume will drop, but as long as the wave of foreclosures slow down with successful short sales and loan modifications, we should begin to settle down in the sub $200k range. One of my listings that was “overpriced” not too long ago, suddenly became the rage with all the activity.
Nice update – things definitely are looking better. I’m glad to see investors staying in the game. They helped fuel the “bust”, but we need them to get back to a normal market.
I think the tax credit helps get squatters off the fence and increases demand, but as you mentioned, a lot of homes are investor purchases + I’d imagine an extension of the credit assuming inventories (nationwide) are still high and foreclosures are still pouring on the market.
Interesting a majority of your activity is investors. Here is the Cary NC market, we are still seeing the bulk of the activity with first time buyers. The sweet spot for us is also under $200K with some movement sub $350K. Anything over $350K is just sitting.
Also, just as an FYI, you have your blog submitted to a number of dofollow sites. However, comments are showing as “nofollow”.
I use commentluv. All links are do follow after a number of links. I believe the number is 7. You’ll see similarly on many other dofollow blogs. Cheers.
In this market analysis there are many things come to b shared. Many points come due to the market analysis.