The outside temperatures have finally cooled down, but our local real estate market seems to be heating up.
Unlike the uptick we saw last spring when the First-Time Homebuyer Tax Credit created a false sense of growth, the data now shows real positive changes. Since January of this year, the volume of active listings has consistently declined, while the number of sales has increased. Sales peaked in May and June of this year, and they have remained strong going into the fall. In August, 46 percent of single family homes on the market sold within 30 days of being listed, compared to January of this year when only 32 percent of homes sold within that same time frame.
I am consistently seeing multiple offers on properties listed below $250,000, and that remains where the bulk of the activity exists. It is true that many of these sales are going to investors. In the past, investors were part of the problem, as so many people jumped into real estate with little money down and had no incentive to keep the properties when the market declined. Now, investors are paying cash for properties. In fact, 40 percent of all sales recorded by the Arizona Regional Multiple Listing Service in August were all cash transactions.
Investors and individuals are moving their investments out of the volatile stock market and seeking refuge in something safer and more tangible. After a long five years, it seems our Cinderella market may finally be headed for the ball!
John Karadsheh is a licensed REALTOR® with Coldwell Banker Trails And Paths Premier Properties. He also is an Associate Broker, Accredited Buyers Representative and a Certified Residential Specialist. You can contact John with any of your real estate questions. Call him at (602) 615-0843, or go to his Web site at www.BuyAndSellAZ.com.
