We’ll make this short and sweet – 2016 Q2 numbers for Phoenix real estate were solid with some trends we haven’t seen for years, setting us up for a strong Q3 and 2016 in general.
The Phoenix real estate market under $500K is holding strong throughout the Valley. Although the luxury market above $500K is still struggling, there are some zip codes that are actually seeing appreciation of up to 7% on their luxury homes. Phoenix zip codes 85018, 85020, 85028, 85050 and 85086 are all doing well in this market, as is Mesa zip code 85213 and Carefree 85377.
Unfortunately for those in most other zip codes with homes above $500K, the news isn’t so good. We’ve been talking a lot about supply, demand and inventory. Up until recently, the big problem in homes between $500K and $2M was too much supply. Now it looks like there is also very little demand when compared to this time in 2015. This table shows the new luxury market listings versus sales and appreciation.
In better news, June closed out the quarter with some strong numbers in the purchase arena. In Maricopa County, there were 10,285 total purchases in June alone. Of those total purchases, 1,908 were all cash, about 18%. This is the lowest percentage of all cash purchases since September 2008. Likewise, the financed purchases made up the other 82%. The 8,377 financed home purchases is the highest number of loans closed in Phoenix real estate since March 2007.
This means more people are able to obtain mortgages to finance their homes and in turn, more people will be able to buy homes. Interest rates are still very low, helping the cause. But we should note that the number of cash purchases is still rather high when you look at numbers before the bubble. The average market share for cash purchases between 1999 and 2007 drifted between 6% and 12%.
The second quarter held a steady incline in Phoenix real estate, despite the lagging luxury homes. AZ golf homes and home owners should feel good about where they stand, as well as confident in making the investment in a new Scottsdale golf home. Contact the Matheson Team to see exactly where your home falls in the market and to browse golf course homes for sale in Scottsdale AZ.
Realtor | Founder
The Matheson Team – RE/MAX Fine Properties
21000 N. Pima Rd., #100, Scottsdale, AZ 85255