Listing Success Rate by Month for Metro Phoenix Through August 2014

Listing Success Rate by Month for Metro Phoenix Through August 2014

 

The Listing Success Rate by Calendar Month is an indicator that allows us to map out previous trends within the Metro Phoenix market to give a few different perspectives.  One of the key perspectives is allowing a snapshot of the busy times of the year versus times that are not as productive in the real estate market.  The chart below allows those perspectives to paint a bigger picture for everyone in the market to buy or sell a home.  

 

As we see, there is not much of a change with regard to the HUD transaction types.  This is mainly because these types of transactions are difficult to qualify for and once a Buyer is pre-approved for this type of lending, they typically do not lose this financing or not close.  Although, this process is more strict and does not allow for many hiccups, it provides Buyers with phenomenal benefits that outweigh any difficulty in the process.  Buyers who qualify for these types of transactions are also most likely to have better credit (as this is a qualification), so these are the customers that Lenders prefer to keep.

 

Next, the chart below details the pattern for REO (Bank-owned) transaction types.  This transaction type is similar to HUD transaction types, as they tend to have a higher Listing Success Rate by Calendar Month versus other transaction types.  This is mainly because the properties that are involved in these types of transactions are actually assets of the lending institution (or, a lending institution).  When a financial institution owns a lot of assets in the form of property that is not generating some sort of revenue, this asset becomes upside down.  In cases like this, a lender prefers to find a qualified Buyer for their property and, even though there are a lot of different options, Lenders tend to make these loans more appealing.  It is a reciprocal system that benefits the Buyer and the Lender.

 

Listing Success Rate by Calendar Month for Metro Phoenix Through August 2014

Listing Success Rate by Calendar Month for Metro Phoenix Through August 2014

 

The most remarkable changes noted in the chart above is actually the Short-sale transaction type.  This has made such a significant dip, mainly because the Metro Phoenix real estate market mirrors the Metro Phoenix economical cycle – meaning when there are improvements in the economy of the Metro Phoenix area, those improvements are also reflected (conversely, in this case) in the Metro Phoenix real estate cycle.  This is reflected in different ways, one of the most obvious is in the decrease in the Listing Success Rate for Short-sale transaction types.  As the economy gets better, the need for Short-sale transaction types goes down. And that is a very welcome trend indeed!

 

Finally, the Normal transaction type is outlined above.  This transaction type is the most reflective of the actual everyday Buyer and, although does not seem to show significant improvement – the improvements that it has have make a significant difference.  As noted in the chart above, the Listing Success Rate for May 2011 was approximately 65% and, even with the roller-coaster ride it ends up at 73% in August 2014.  This 8% improvement shows that there is more than meets the eye – Normal transactions is the type that picks up the slack when another does not.  Most of the time, Buyers are elated to go through and complete the Normal transaction process when purchasing a home.

 

Based on the information in the chart above, the Phoenix Real Estate Market is still improving over the previous years. It’s a great time to live in the Valley of the Sun – Phoenix Arizona!

 

Listing Success Rate by Calendar Month for Metro Phoenix Through August 2014

 

 

 

 

 

Phoenix Property Shoppe
  

 

 

Anna "Banana" Kruchten
Designated Broker & Owner
CRB, CRS, GRI, CNE, SFR, CDPE, WLS


Phoenix Homes For Sale

 

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Comments

Hi Anna - That data provides an interesting analysis of the market, well explained by you. I wish we had that type of information available from our MLS, but they don't compile it.

Posted by Dick Greenberg, Northern Colorado Residential Real Estate (New Paradigm Partners LLC) about 5 years ago

Anna

Thanks for sharing the August 2014 real estate market update for Metro Phoenix.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) about 5 years ago

It does tell a story. On another note i sure wish HUD would list and sell their REO more traditionally. In our area they sell for so much less than they should and the amount of buyers is often reduced by the way they take offers. 

Posted by Scott Godzyk, One of Manchester NH's Leading Agents (Godzyk Real Estate Services) about 5 years ago

Anna - This is an excellent educational map to see monthly stats on listing success rate for Metro Phoenix.

Posted by John Pusa, Your All Time Realtor With Exceptional Service (Berkshire Hathaway Home Services Crest) about 5 years ago

Anna,

 Your market report lets people know that you are the Queen of your area and you not only know it but you rock it!

Posted by Yolanda Cordova-Gilbert about 5 years ago

funny to see that only about 1/2 the short sales are making it. I am reading this correctly, right?

Posted by David Shamansky, Creative, Aggressive & 560 FICO - OK, Colorado Mtg (US Mortgages - David Shamansky) about 5 years ago

Great graph to show the market trends on listings by transaction type in Metro Phoenix. Well done Anna!

Posted by Wanda Kubat-Nerdin - Wanda Can!, So Utah Residential, Referral & Relocation REALTOR (Prado Real Estate South) about 5 years ago

That is an interesting way to look at the data, Anna.  And, I know that potential buyers and sellers will find this helpful!

Posted by Ron Marshall, Birdhouse Builder Extraordinaire (Marshall Enterprises) about 5 years ago

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