The Arizona Republic reported numbers today that show mixed signals regarding the Phoenix housing market. Part of the confusion is due to the large unknown regarding the impact of the federal homebuyer tax credit on sales as well as the loan-modification program on foreclosures.
The Republic reported that the “number of foreclosures climbed, but the number of foreclosure homes resold by lenders didn’t. New-home sales sagged, but the median price of all home sales ticked up above expectations.”
This can be really confusing. Let’s take a closer look at their reported numbers:
- Foreclosures rose about 20 percent last month, while pre-foreclosures, or notice of trustee sales, fell 5 percent.
- Homebuilding slowed but not by much. Permits in the Phoenix metro area for new homebuilding went down from 604 in April to 571 in May. However, homebuilding is up more than 50 percent, year-over-year, from 2009 to 2010.
- Though homebuilding decreased slightly, home prices increased in May (around $2,000 above expectations).
- As I have blogged about recently, short sales done by homeowners to avoid foreclosures, are up in Phoenix.
So what does this all mean?
I have been talking a lot about the fact that the market is beginning to stabilize. And these numbers partly reflect that in that we aren’t seeing the huge fluctuations we were a few years ago.
What we are beginning to see is – though inconsistent numbers are posting – the market’ inconsistency is becoming much more predictable in nature. For example, it isn’t surprising that homebuilding went down after the federal homebuyer tax credit expired. And it is also isn’t hugely surprising that home prices went up while mortgage rates remain so low.
In general, the market is making a little bit more sense.
I’m not saying we are out of the woods yet and there is still a lot of confusing data being reported, various financing options that can be explored, and different incentives offered by homebuilders. If you are interested in buying or selling a home, please contact me. I’m here to help and happy to brainstorm what might make the most sense for your specific situation.
Read the full Arizona Republic article here.
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