Chart of the Day: Phoenix foreclosure sales pushing resale market higher

May 26, 2011

by Scott Sambucci

4 comments

(Inspired by this local perspective on Phoenix foreclosure sales.)

We’re often asked how distressed sales affect the resale market, and whether the housing market should be bifurcated into distressed and non-distressed sales.  Mathematical beauty is in the eye of the modeler, but our active market analytics in Mesa shows that as distressed sales are picking up, so is the resale market:

Median Ask Price & the Altos Research Market Action Index (a measure of absorption - the higher the number, the better the market) for Mesa, AZ last 360 days

Resale inventory is plummeting simultaneously.  Assumably a portion of these exiting properties were unsuccessful short sales that moved into the foreclosure process and were sold to third parties.  (According to ForeclosureRadar, this ranges from 100-180 days as of April 2011.)

Resale market inventory for single-family homes: Mesa, AZ last 360 days

Lower supply, bottoming prices, investor demand – all good indicators of reaching the bottom.

 

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