Here are a couple of charts that I thought would be of interest to you.  The data is updated through November.  The first is a Distressed Property Analysis. 

This market segment continues to be a major factor in the Real Estate market today, and will continue to be an important trend to watch as we move forward to see if there are any shifts in the type of homes being sold.

The chart shows the percentage of sales that were bank owned/foreclosed, short sales, and regular sales. 

A bank owned/foreclosure home is one that the seller no longer owns – it has been taken over by the lender(s) who had a note on the home.  Short sales are homes where the seller is negotiating with the bank to “forgive” a portion of the debt in order to avoid foreclosure. 

For the second month in a row, statistics showed a significant increase in non-distressed home sales … a 4% increase.  Short sales remained at the same percentage (20%), and bank-owned sales dropped by 4%.  As rumors of bank-owned properties entering the market after the first of the year play out, this will become even more important to watch.

Another segment of the market that bears watching is the Pending Sales Analysis, and how it affects both sellers and buyers.  I include it here because of the significant decrease in Pending Sales in November.

Sellers:
Pay attention – November saw a 20% decrease in the number of pending sales over the prior month.  This is the 7th month in a row, that the number of pending sales has decreased AND is the lowest this number has been since December of last year. Contributors definitely include the buyer credit deadline that just passed, shrinking inventory, the seasonality of home buying, and more homes remaining as Active With Contingency until they close.  Since homes usually take 45-60 days to close after they go pending, it will be very important to continue to monitor the impact on closed sales over the next few months!

Buyers:
Buyers have been given a reprieve with the extension and modifications in the home buyer credit.  As a result, this just might be the perfect time to look for a home – the holidays usually mean less competition, and buyers may be able to find the home of their dreams before buyer activity picks up again after the first of the year.

The market we are in today is in a constant state of shift, and month to month, I will keep you updated on the numbers that are having the most significant impact on the market. The information I provide here is for the entire Phoenix area, but it can be narrowed down to your neighborhood if you would like me to get that for you.  I keep up with the numbers, so if I can provide you with any other information, please do not hesitate to call.