Fidelity National Title and The Cromford Report, a subscription-based online statistical resource on the metropolitan Phoenix residential-resale market, have collaborated on a market report indicating that Arizona's real estate market peaked in June 2006 and bottomed out in April 2009. The maximum inventory of homes on the market occurred in late April 2008, the companies add.
According to Michael Orr, analyst and author of The Cromford Report, this month's pending sales in the Arizona Regional Multiple Listing Service (ARMLS) are at a record level for January, signifying an increase in demand. While the buying frenzy has cooled at the bottom of the market, activity is warming for homes in the $250,000-$400,000 range, Orr adds.
As short sales continue to dominate the Phoenix market, another dip in sales prices is expected, he says.
‘The last three months of 2009 saw a 60 percent increase in short-sale closings,’ adds Fidelity Senior Vice President Steve de Laveaga. ‘In 2010, you will see a number of lenders move to aggressive short-sale programs and cash-for-keys for sellers.’
According to de Laveaga, trustee sales by bank-owned properties result in an average of $38,000 lost per transaction compared to a short sale.