The current real time market profile shows there were approximately 12,191 new listings (up 2,192 listings from last month) on the market in March 2017 and 9,365 sold transactions (up 2,827 listings from last month). The overall inventory of homes on the market in March 2017 is 22,246 homes (down 366 listing from last month) which is down -14.7% 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. Due to the large spike in the number of sold transactions and the decline in average days on market this shows buyer’s demand is strong where inventories may continue to be low and drive up prices.
Since November 2016 after our new president took office the average sales price has increased from approximately $281,000 to $289,000 or an appreciation rate of 2.7%. Since the Federal Reserve last increased interest rates by .25 basis points mortgage interest rates have gone down due to the anticipation of a possible war. It appears the interest rate increase has not slowed down the Phoenix market and it has actually increased buyer’s demand for housing as evident with a 43.2% increase in the number of sold transaction from last month. Since March 2016 (12 months ago), the average sold price has increased +6.4%, the average days on market has increased approximately +0.0% (down from last month) and the number of sold transactions has increased approximately -10.9% (up from last month).
The volume of foreclosure purchases since March 2016 (12 months ago) has increased approximately +6.0% and the volume of short sales increased of approximately +2.4%. Since August 2013 the number of foreclosures have decreased -188.3% 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 -430.2% 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 -11.6% or 25,169 homes for sale on the market to a gradual decrease of 22,246 homes (Down 366 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!!