Lately, much of the discussion around these parts has centered around single-family housing inventory, or the lack there of. However, over the past 30 days levels here in greater-Phoenix ticked up a little, around 3-4%.
I’ve been noticing a trend lately that may explain the increase. Each day, I bid on 6-8 homes at the auction. Prior to bidding I must determine an after repair value for the property. So when I find one scheduled to go to auction that meets my criteria the first thing I do is type the address of the house in the multiple listing service to see if it has ever been listed for sale. Next, I pull up all of the active/pending/closed listings in the home’s subdivision for the past 6 months. This gives me a feel for all sales activity in the area.
The active listings I find in the subdivision I’m researching are almost always overpriced by as much as 10-20%. This got me wondering – how many single-family homes that are NOT A SHORT SALE OR REO in Maricopa County have been on the market 69 days or more (69 days is the average amount of days on market according to Michael Orr of Cromford Report). In other words, how many normal sales have been on the market above the average of 69 days? Here’s what I learned:
- There are 5,574 active single-family homes for sale in Maricopa County that are not an REO or short sale (the Arizona Regional Multiple Listing Service has a box to check under Special Listing Condition called N/A – when checked short sale and REO properties are removed from the active listing count list).
- Of those 5,574 active single-family homes for sale in Maricopa County, 2,154 have been on the market for 69 days or more.
That means 38% of all active single-family homes not in foreclosure, a short sale, or bank-owned have been on the market 69 days or more. In a red-hot real estate market how can that be? I’ve got one word that will explain it – PRICE. It’s likely that many of these houses are overpriced. If the owners of these properties would drop their list prices no doubt they would sell very quickly.
There is no problem price can’t fix.