Notes and Opinions from one of Arizona's Most Trusted Loan Teams

Most of you heard some news or another about improvments in home sales over last year. We wanted to take a minute to refine the information for you because the difference is not just the number of sales, but who is buying and what did they buy. 

One of the most important factors in last year's market was the huge influx of investors and first-time buyers taking advantage of bargain-basement prices and tax credits. That trend did not continue into 2010.

According to the Arizona Regional Multiple Listing Service (ARMLS), Maricopa County home sales for single family homes rose from 5922 sales in March 2009 to 6507 homes in March 2010. That 10% increase in homes sold was widely reported. Average home prices increase from around $124,000 to $134,000 and that was also reported.

What wasn't so widely reported is the price range of the new sales and what the implications are of that change. Of the 585 additional sales in 2010, a full 490 of them were sold for more than $200,000. (up to $3 Million) This is not the price range of "starter homes" or rental properties. This price range was one of the worst performers in 2009.

Our take on this is pretty simple. The home buyers who didn't lose their jobs in 2008 or 2009 began to relax about their prospects for the future. They still have good credit and income and they have jumped back into the market in a big way. After all the market changes of the last 2 years, they bought bigger homes at half the 2006 or 2007 prices.

We welcome them back. This activity will go a long way toward stabilizing the real estate market in Arizona.