Housing market back to normal
Some good news for the metro Phoenix housing market. We're normal! Normal is a relief after the boom and bust cycle we've been through. First and foremost, median prices up about 6% from a year ago. This growth rate is more in keeping with the healthy (normal) growth rates seen before the boom and bust.
In June, nearly 88% of all home normal sales utilized regular financing. Three years ago almost half of sales involved a short sale, foreclosures, or were sold at bargin prices by the lenders; which had reacquired them following a foreclosure.
Half of homes sold in June were in the $200,000 to $250,000 price range. Just four years ago, the market was dominated by cash buyers purchasing bargin priced homes.
Which brings us to cash buyers. In June they account for approximately 20% of sales, nearly half as many as four years ago.
And the last piece of good news for sellers is that listings are down 5% from a year ago. This tightening should result in an increase in value for homeowners.
One of the best indicators of where the market currently resides is the Case-Schiller Repeat Sales Index or RSI. Metro Phoenix home prices aren't back to where they were before the crash. The current median price is $221,000; below the peak in 2006 by about $40,000. Visit my Real Estate Market Conditions page for the latest Repeat Sales Index for the Phoenix metro area.