The current real time market profile shows there were approximately 9,999 new listings (up 3,847 listings from last month) on the market in February 2017 and 6,538 sold transactions. The overall inventory of homes on the market in February 2017 is 22,612 homes which is down -12.9% as compared to the number of home on the marker in August 2014. In December 2015 there were 23,353 homes, in December 2014 there were 26,270 homes and in December 2013 there were 26,463 homes for sale on the market. This declining number of homes for sale on the market is a good for sellers if 2017 brings added buyer demand due to changes planned to be enacted by our new president.
Since November 2016 after our new president took office the average sales price has increased from approximately $281,000 to $$287,000 or an appreciation rate of 2.1%. Last Wednesday the Federal Reserve increased interest rates by .25 basis points and another rate increase is expected in July and October of this year. We will not see the effect of this rate increase in the Phoenix market until after a few months because it typically takes 30 to 45 days for a finance buyer to complete the purchase of their new home. Another change in the Phoenix market since November 2016 is the average days on market have increased from 73 days to 81 days or an increase of 11%. Since March 2016 (12 months ago), the average sold price has increased 6.6%, the average days on market has increased approximately +2.5% (up from last month) and the number of sold transactions has decreased approximately -22.7% (up from last month).
The volume of foreclosure purchases since March 2016 (12 months ago) has decreased approximately -24.3% and the volume of short sales decreased of approximately -36.7%. Since August 2013 the number of foreclosures have decreased -301.3% and the current percentage of foreclosure sales is only 2% of the market which indicates a healthy market. Also, since August 2013 the number of short sale transactions have decreased -516.2% and the current percentage of short sales sold is only 2% of the market. Unfortunately, some homeowners who bought between 2005 and 2007 are still up-side-down as shown in the annual average sold price chart above.
Since March 2016 (12 months ago), the number of homes for sale on the market have decreased approximately -10.7% or 25,329 homes for sale on the market to a gradual decrease of 22,612 homes (Up 758 homes from last month). The total number of listings is low as compared to 26,076 listings in August 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), interest rates are planned to increase in 2017 and the macroeconomic market is improving both in terms of prices and the overall economy. Give us a call to discuss your best buying or selling strategy, TODAY!!