While the media is publishing Phoenix as a poster child of housing recovery, (article), the dramatic sales increase stats have more to do with the sub-$200K market.
The luxury home market in Carefree and Cave Creek is selling, just not at the frenzied pace. Bank Owned and Short Sale homes are rare in this area, and the “normal Sellers,” are now able to attract a Buyer.
According to local stats, luxury ($500,000+) homes, are selling at roughly 2003 prices. These are well below replacement costs, thus good buys, however the remaining inventory is not ideal.
A lot of buyers are shopping, and share frustration that there are so few “good homes.”
There are still a lot of homes on the market at $1M+ waiting for the prices to catch up.
Is it time to step up or downsize your Arizona home? Homeowners who are thinking about a re-position of their housing investments should consider listing right now. Supply is low, demand is high, and prices are strengthening!
Watch for future local posts of data from Carefree and Cave Creek specifically:
Charts that include May 2012 sales for Carefree, Cave Creek, and Scottsdale are located in the link below, scroll to the end.
If you are a speed-reader, just watch for my yellow highlights pointing out details for the luxury home market in our area.
Local expert, Michael J Orr is Director of the Center for Real Estate Theory & Practice at W P Carey School of Business,Arizona State University. Here is his June 2012 report:
The median sales price is up 32.4% from $111,000 to $147,000
Average price per square foot is up 22.2% from $80.30 to $98.14
• Townhouse/condo prices have increased by a slightly larger percentage:
The median sales price is up 37.3% from $69,900 to $96,000
Average price per square foot is up 23.1% from $84.89 to $104.05
• Overall supply (excluding homes already under contract) is down 50% on June 1 2012 compared
with June 1, 2011, and distressed supply is down 80% over the same time frame.
• Foreclosure starts on single family and condo homes rose 1.2% between April and May 2012 and
were up 5.2% from May 2011
• Recorded trustee deeds (completed foreclosures) on single family and condo homes were up
18% between Apri l and May 2012 but were down 52% from May 2011
• 71% fewer single family homes reverted to lenders at trustee sale compared with May 2011
• Sales of single f amily homes were 5.8% lower than in May 2011, constrained by lack of supply
• Single family home sales increased year on year for
New homes (up 57%)
Normal re-sales (up 74%)
Short sales and pre-f oreclosures (up 15%)
• Single f amily home sales reduced year on year for:
Investor flips (down 4%)
Bank owned homes ( down 46%)
GSE (Fannie Mae, Freddie Mac, etc.) owned homes (down 76%)
HUD sales (down 67%)
Third party purchases at trustee sale (down 16%)
ASU Housing Report 6.2012 this is the full report with my highlighted notations
For homes and land in Carefree and Cave Creek, shop the local MLS: www.CarefreeProperty.com