In the Phoenix Metro area, we have seen a dramatic decrease in the number of investor sales in the past 2 years. For example, in July of 2012, our area hit it’s record percentage of investor sales out of total sales – a whopping 33.5%.
In July 2014, that percentage had fallen to only 11.7% of sales, which, according to Mike Orr of ASU’s Cromford Report
, was the lowest percentage we have seen since 2008. It was up slightly last month at 13.0%.
What has caused this drop in investor sales? Local real estate experts blame the decline on the increase in sales prices over the last 2 years.
By most experts’ accounts, the bottom of the market of our most recent real estate cycle here in the Phoenix metro area took place around the third quarter of 2011. Since then, the annual median sales price of single family homes in Scottsdale have increased approximately 32% (from approximately $358,000 in October 2011 to $472,000 last month.)
The annual median sales price is the median price of the last 12 months of sales data.
Long term chart of annual median sales prices in Scottsdale
The annual median sales price of single family homes in Phoenix have increased approximately 115% since the third quarter of 2011 (from $86,000 in October 2011 to $185,000 last month.)
Long term chart of annual median sales prices, Phoenix
In addition, there are very little distressed properties on the market, popular among investors because they are considered to be good deals. March of 2011 had the highest number of foreclosure sales in Maricopa Country in a single month for that year, 5,167 foreclosure sales, which was down from the peak in 2009. Last month, county-wide foreclosure sales amounted to only 456 sales.
Looking at the long-term chart below, foreclosure sales (trustee deeds) are just about at the same level that they were in the “pre-bubble” days of 2001- 2004.
Long term chart of Maricopa County Foreclosure Sales and Trustee Deeds
Our team of real estate agents continue to work with real estate investors. It takes a diligent agent to find the right opportunity for the investor-buyer.
If you’re an investor looking for a investment opportunity in the Phoenix area, be sure to contact us by calling 602-899-5629 or by filling in the contact form below. We’ll find it for you.