Why are there more buyers but fewer sales in Phoenix?
And could it be happening in your neighborhood?
The latest issue of The Wilcox Report to clients shows that there are four reasons the pool of buyers in the Greater Phoenix area is growing, and yet at the same time there are three reasons there has been a slowdown in home sales.
Here are the 4 reasons homebuyers are increasing in number:
2. Population growth
3. A high number of boomerang buyers who may be able to buy again after foreclosure or short sale
4. High number of renters looking to get a home.
The report continues:
Reasons Why Existing Sales Were Down in January 2014 Compared to January 2013.
Less Distressed Sales. The first reason for less sales in January 2014 may be because there were less distressed sales. When adding together the number of short sales, lender owned sales and HUD sales, there were 854 less distressed sales in January 2014 than January 2013.
Less Cash Sales. Since cash buyers there were 458 less cash purchases of distressed properties.
Less Inexpensive Sales. Less distressed sales led to less inexpensive sales. In January 2014 there 799 less sales under $150,000 compared to January 2013. NOTE: When comparing sales between $150,000 and $499,999 and for sales over $1,000,000 there were more sales in January 2014.
We should remember to thank all the cash buyers for what they did for our market. Their purchases took off the market excessive cheap inventory, and competition amongst cash buyers for cheap properties drove up home prices. From 2009 through 2011 there were 19,773 ARMLS sales under $50,000 with 18,328 or ninety-three percent purchased with cash. Today there is only a handful of monthly sales under $50,000.