The current real time market profile shows there were approximately 11,402 new listings (up 745 from last month) on the market in March 2016 and 8,457 sold transactions. Since the beginning of the year the number of new listings has exceeded the number of sold transactions but the number of sold transactions is 7.2% higher the number of transaction in March 2015. This could be a good sign the summer buying season will be strong than last year.
Since April 2015 (12 months ago), the average sold price has increased approximately +1.3% (up from last month), the average days on market have decreased approximately -6.0% (down from last month) and the number of sold transactions have increased approximately +0.6% (up from last month). Since the month of September 2015 the average sold price has formed a new upward trend where each month the average sold price has gradually increased. Last year’s summer buying season was weak where we saw prices decrease from June to September. As long as buyer demand stays strong until September we should continue to see the Phoenix real estate market appreciate over the summer months.
The volume of foreclosure purchases since April 2015 (12 months ago) has decreased approximately -40.2% and the volume of short sales decreased of approximately -21.8%. Since November 2014 the volume of foreclosure purchases went up and now the trend is back down once again. Also, since August 2013 the volume of short sale purchases have consistently decreased because the inventory of homes “up-side-down” have been exhausted and values have risen to a point where consumers can break-even or sell with some equity but some homeowners are still up-side-down depending if they purchased their homes between 2005 and 2007.
Since April 2015 (12 months ago), the number of homes for sale on the market have increased approximately +1.5% or 24,965 homes for sale on the market to a gradual decrease of 25,329 homes. The total number of listings is still low as compared to 29,308 listings in April 2014. This decrease in the number of homes for sale indicates we are currently in a seller’s market (low supply and increased demand).
Real estate prices are still relatively low (near 2008 prices), mortgage rates are still at a historical low and the macroeconomic market is improving both in terms of prices and the overall economy. Give us a call to discuss your best investment strategy, TODAY!!