photo credit to MiamiAmia, via StockExchange
The big story is the sales volume in ZIP code 85027 - 15% of homes for sale in this ZIP actually sold in the past 30 days. This is the area between Union Hills and Jomax roads, and between 7th Avenue and 35th Avenue. Fifteen percent is news enough but folks in this ZIP also just hit the magic 6 months of inventory for sale. That means 85027 is a “normal” market. Of course real estate is local and pockets of 85027 might be selling faster or slower than average.
The impressive sales volume in 85027 is probably due to the low list prices and the number of distress sales (short sales, pre-foreclosures, foreclosures and lender owned properties). Nearly half (48.8%) of the 45 sales last month were distressed in this way. The bargain hunters are out and they’re snatching up bargains!
Factoids about the 45 homes sold in 85027 in past 30 days:
- Least Expensive - $52,200 for a 2 BR condo just under 800 square feet at the 101 and Deer Valley
- Most expensive - $390,000 for a 3300 square foot home built in 2000 at 35th Ave & Pinnacle Peak
- 40% of buyers used an FHA loan
- 8% of buyers used a VA loan
- 8% of buyers paid in cash
- 40% of sellers paid some or all of the buyers’ closing costs (not necessarily the same 40% as above though)
- The average price was $114 per square foot
- The average was only 84 days on the market before accepting a contract
- A total of $8.6 million in real estate changed hands in this ZIP alone in the past 30 days (per the sales price)
The Takeaway Lessons for Buyers
- FHA loans rule! The Arizona Mortgage Guru will tell you if you qualify for an FHA loan
- FHA buyers can accept gift money as their down payment
- Sellers will likely pay some or all of your closing costs
- Hence, you can still buy a house with almost nothing down
- You can't always assume the home you saw today will still be for sale in a month
Are you a first time buyer or a buyer shopping the sub-$250,000 market? Maybe it's time to jump in. But it's not the right time to buy for everybody. Contact me and I'll be happy to help you figure out if it's the right time for you to buy.
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The fine print: I include all property types (homes, patio homes, townhouses, and condos) and I go back to 1 day later in the prior month (i.e. today I went back to Jul 4).