The current real time market profile shows there were approximately 9,938 new listings (up 606 listings from last month) on the market in September 2016 and 7,442 sold transactions. The overall inventory of homes on the market is down -16.4% in September 2016 as compared to the number of home on the marker in August 2014. The current number of home on the market is equivalent to houses on the market in September 2015 but due to the greater demand this year the low inventory of homes on the market may cause prices to appreciate at a faster rate. There is currently 21,738 listing on the market and 7,442 sold transactions which equates to 2.7 months of inventory at the market. Historically, 2.9 months of inventory on the market which is the lowest the Phoenix market has seen June 2013.
In July 2016 the average sold price took a steep dive south as well as the number of sold transactions. The month of September the average sold price increased approximately +2.4% to $282,128 and is approximately back to the average price in June 2016 at $282,879. Historically, as we enter the winter holiday season the number of sold transaction decrease but since 2014 the average sold price increased. In 2014, the average sold price increased +5.3% from September to December and in 2015 the average sold price increased +3.6%. Since October 2015 (12 months ago), the average sold price has increased approximately +7.2% (up from last month), the average days on market have is unchanged (down from last month) and the number of sold transactions have increased approximately +17.4% (down from last month).
The volume of foreclosure purchases since October 2015 (12 months ago) has decreased approximately -17.9% and the volume of short sales decreased of approximately -25.8%. Since August 2013 the number of foreclosures have decreased -211.7% indicating a healthy market. Also, since August 2013 the volume of short sales have decreased -479.7% 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 if they purchased their homes between 2005 and 2007.
Since October 2015 (12 months ago), the number of homes for sale on the market have decreased approximately -8.5% or 21,754 homes for sale on the market to a gradual decrease of 21,738 homes. 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), 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 buying or selling strategy, TODAY!!