Credit Suisse November 2012 Industry Realtor Survey report just released today (12/7/2012). Below is extracted from its report for Phoenix, AZ housing market.
Phoenix, AZ has 7,389 single-family permits in 2011, 4th largest market in the country.
Traffic backing to meeting expectations as buyers are comfortable with rising prices. Traffic came in to meet expectations in November, as our traffic index improved to 48 from 43 in October, the only month in which traffic did not meet or exceed expectations since November 2011. Agents’ commentary in November shifted away from frustrated buyers fed up with competition from investors (though there was still some in November) to more opportunistic buyers, who were still excited about the improvement in the Phoenix market. One agent mentioned, “Higher prices and positive news from the media have driven buyers to keep going on with their search.” Another agent mentioned, “Low interest rates and increasing prices have given rise to urgency, with buyers not wanting to wait on the sidelines.” Another agent mentioned that snowbird season has started off well, while another highlighted that Canadian buyers were continuing to drive demand. However, agents did note that some buyers were facing difficulties securing mortgages for homes under $150,000, while others were not drawn to the quality of current inventories.
Prices higher while inventories remain flat. Prices were higher once again in November, as our home price index came in at 82 from 86 in October, with readings above 50 pointing to sequentially higher prices over the past month (12th consecutive month). Meanwhile, agents indicated that inventory levels were unchanged in November, following the first increase in levels in over a year in October. Our home listings index came in at 48 from 33 in October, in-line with a neutral reading, which points to flat inventories. In addition, our time to sell index came in at 58 (from 61 in October), just above a neutral reading of 50, which indicates a slightly lower time to sell in November. We view this as a positive for pricing.
Source: Credit Suisse
