According to the Cromford Reports mid month pricing update and forecast there continued to be an increase in the number of short sale homes and a decrease in the number of REO across the Phoenix metro area.
They reported an overall price increase of 1.4% as of December 15 2011 over the same time last year and they repeated it twice for the benefit of those who recognize that as being appreciation and that can’t be correct can it, there are many who still think we are in a buyers market, all I can say to them is maybe they should watch less TV!
Narrowing it down a little more local because after all real estate is local, here in the southeast valley we have experienced even higher appreciation than the Phoenix metro area as a whole with Gilbert realizing a 2.1% increase in price/sf from a year ago and an even higher 3.3% over the average p/sf for the year, which shouldn’t come as a surprise since on 12/16/10 Gilbert had 164 days of inventory compared to 77 days inventory on 12/15/11.
Queen Creek has even doubled the appreciation rate of the valley as a whole with 4.1% from a year ago and 3.8% higher average price/sf last month compared to the average for the year. Again can be explained by supply and demand, on 12/16/10 Queen Creek had 145 days of inventory compared to 62 days inventory on 12/15/11.
The Gilbert and Queen Creek area like the rest of the Phoenix metro area has seen a decease in REO inventory REO’s account for 25% of the monthly sales in Gilbert and 23% of the monthly sales in Queen Creek. Short Sales have increased to 36% of the monthly sales in Gilbert and 39% of the homes for sale in Queen Creek are Short Sale.
With the Mortgage Debt Relief Act of 2007 expiring on 12/31/2012, I would not be surprised to see to increase in the number of short sale homes for sale trend we have been seeing continue though out 2012.
This information is for general informational purpose and not intended to be investment advise, and should be explained
to you in detail. You should always consult an attorney and/or tax advisor to obtain further information you deem necessary.
I want you to be prepared.