Prices stabilize as Phoenix market reaches balance
The numbers are in for real estate activity in the Greater Phoenix area in November 2013, and they show that the cooling that began this summer continued through the first of December. Michael Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School and author of the monthly market report said that the median sales price for a single family home was unchanged between October and November.
For more information, click HERE:
This report includes MLS data for the past 36 months in Maricopa County only as provided by the FlexMLS system. Please note that searches fluctuate daily when running these reports; these figures were obtained on 1/3/2014.
A reminder that you need to meet with a real estate professional to see how statistics impact the area where you are considering selling or buying – blended statistics will not be as accurate as a more detailed report that your real estate professional can provide to help you with your decision making.
(click any graph for larger image)
Total # of Closed Sales (36 Month Overview)
Closed Sales Report Analysis:
As is typical in the last month of the year, December saw a significant increase in the number of closed sales – an 11.9% increase over the month of November. As buyers worked to beat the changes in FHA financing and other lending requirements, there was definitely an impact on closed sales. The statistics show that we had 5,225 residential homes sell in December in Maricopa County compared to 4,669 in the month of November. This follows a 6-month trend in a decreased number of home sales. Sellers should pay attention to this to see how lending practice changes will impact the number of buyers who are able to purchase a home.
For buyers, it is also important to understand the lending options that are now available for purchasing homes in light of changes that went into effect in January. As prices and interest rates continue to rise, it will be more important than ever to have a reliable lender and real estate professional to guide you through the home buying process.
Average Sales Price (36 month overview)
Average Sales Price Analysis:
Last month saw the average sales price increase 5.7% from $243,754 to $257,626. This follows the trends for the month of December in prior years. This is the HIGHEST average sales price we have seen in the 36-month period. However, serious Sellers need to remain diligent about pricing homes according to the current market and to understand how this increase impacts individual homes. Sellers are encouraged to spend time with their real estate professional to determine what is happening in their local market.
This statistic is an indicator that buyers still continue to pay more for homes than they have in the past 36 months. Educated and savvy buyers understand that a competitive market gives them fewer options for home choices, negotiating on price AND looking for concessions from a seller. This may vary from area to area AND from price range to price range. Buyers need to make sure they are fully informed regarding the specific market in which they have an interest in order to have the best chance of being competitive when making an offer
Total # Pending Sales (36 Month Overview)
Pending Sales Report Analysis
The month of December saw a significant decrease in the number of homes that moved to pending status – a total of 3,214 homes. Although it is normal for this time of year to see a decrease in pending sales, this is the lowest number of homes moving to pending status in the 36-month reporting period. It is very important for sellers to continue to monitor this statistic, as it means the number of buyers and sellers that were able to come to agreement on the terms of a contract on a home remains low when compared to other months in the 36-month reporting period.
Educated and savvy buyers understand that a competitive market gives them fewer options for home choices, negotiating on price, and requesting seller concessions. Although this may vary from area to area and from price range to price range, buyers need to make sure they are fully informed regarding the individual market in which they have an interest. This will give them the best chance of being competitive in the search for a home. With the recent increase in interest rates, it will be important to monitor its impact on future sales.
New Listings (36 Month Overview)
Months of Inventory Analysis
The month of December followed the normal trend for this month and saw a dramatic 25.9% decrease in the number of new listings entering the market, a total of only 5,400 homes. We haven’t seen that few homes enter the market in one month during this 36-month period. Sellers still need to monitor this new inventory to see how it might impact the sale of their home. With all of the other factors showing a shift to a more balanced market, sellers need to be more aggressive than ever to price their homes to attract buyers. If your home is not selling in this market, it is more than likely a pricing issue. Buyers are very aware of this shift, and are making offers on homes that are priced well, and offer the best amenities and terms.
Buyers pay attention! December brought you 5,400 more choices. Although buyers do have more options, the other statistics in this report reveal that well priced homes are still selling quickly. More than ever, it is essential that you take advantage of this new inventory. Spend time with and listen to your real estate professional to develop your strategy for succeeding in a market that is constantly changing.
Would you like to know what is happening in your neighborhood?
Would you like to know the value of your home?
Do you need help deciding whether to sell or not or would you like to know if now is the right time to buy?
I would be very happy to get you that information.
Just hit the Reply and let me know.