To be a qualified instructor for the Arizona Department of Real Estate, each year I have to attend Instructor Development Workshops. One of the classes I just took was an update on the Phoenix Housing Market. My disclaimer, I am not a residential real estate agent and only work on commercial properties. Having stated that, I did take notes (and charts below) and found some of the following statements and statistics very fascinating; especially when it comes to the number of “shadow” inventory in our market.
Here are the highlights and the charts will follow:
-The new EastMark Development on the former GM Proving grounds in Mesa is a 5 square mile development and will add 800 homes this year
-Less than 10% of Total Home Sales were New Home Sales
-61% of Total Home Sales came from the middle class move up Market
-Less than 6% of Total Home Sales were Investor Flips (owners of homes less than 90 days)
-Less than 10% of the Total Home Sales were Short Sales/PreForeclosures – this was a “typical” Phoenix Housing Market
-Median Age for the State of Arizona in 2013 is 35.9
-Biggest cost for new construction is lumber costs. A story was mentioned that a contractor could only guarantee the cost of lumber for one week from their supplier!
-We were reminded that January 2008 was the bottom of the market for Home Sales Per Month
-We are still over 30% off of Peak Average Sales Price Per Month – Peak $350,400 in May 2007 and in May 2013 it was $237,803