by Bill McBride on 7/09/2012 05:38:00 PM
Monday, July 09, 2012
Tom Lawler sent me an update on Phoenix today:
The Arizona MLS reported that residential home sales by realtors in the Greater Phoenix, Arizona area totaled 9,129 in June, down 17.9% from last June’s pace. Bank-owned properties were 14.1% of last month’s sales, down from 40.8% last June, while last month’s short-sales share was 32.8%, up from 27.0% last June. Active listings in June totaled 19,857, down 1.5% from May and down 32.0% from a year ago. The median sales price last month was $141,000, up 27.6% from last June. Citing data from the Cromford Report, ARMLS said that foreclosures pending in Maricopa County in June totaled 17,910, down 35.1% from a year ago.Look at the sharp decline in bank owned properties sold - this was down to 14.1% of all sales, down from 40.8% last June.
Short sales were up - from 27.0% to 32.8% - but total distressed sales were down to 46.9% of sales (still high) from 67.8% last June.
Lawler didn't mention it, but conventional sales were up about 19% compared to June 2011. So the decline in overall sales is actually a positive! I mentioned this last month: Home Sales Reports: What Matters
When we look at sales for existing homes, the focus should be on the composition between conventional and distressed. ... Those looking at the number of existing home sales for a recovery in housing are looking at the wrong number. Look at inventory and the percent of conventional sales.And another key point; look at the decline in foreclosures pending. This was down from close to 44,000 in June 2010, to 27,616 in June 2011, and 17,910 in June 2012. Note: Arizona is a non-judicial foreclosure state, and as LPS noted this morning, the non-judicial states are recovering much faster than the judicial foreclosure states.
Also inventory (active listings) is down from around 42,000 in June 2010, and from 29,203 in June 2011, to 19,857 in June 2012. And months-of-supply is now close to 2 months in Phoenix.
We should have data on other distressed markets over the next few days, but I wanted to highlight this sharp decline in Phoenix.
Posted by Bill McBride on 7/09/2012 05:38:00 PM