The number of new listing in the month July 2018 is 9,088 listings (down 1,149 from last month) where we saw a similar drop off in July 2017 which is the month just before kids go back to school. The overall number of active listings as compared to the total number in July 2017 of 19,874 listing is similar to the total number of listings this year at 19,834 listings which is only a difference of -40 listings. In the past months this difference has been a lot wider where the number of new listings coming on the market is helping with the lack of active listings on the market. As for the number of sold transactions, we had fewer transactions in July 2017 of 8,024 transactions than in July 2018 at 8,547 transactions which is only a difference of 523 transactions. This is good news which shows the market is continuing to follow its normal cyclical ups and downs.
The Phoenix Housing Market ended 2017 with an overall annual appreciation rate of approximately +9.0%. If inventory remain low throughout 2018 and a strong demand for housing continues we can expect the market to continue to appreciation above the national average. Historically, real estate prices don’t start to increase until March as the buying season begins ands starts to slow down in August once kids go back to school which we are starting to see signs in July. In July 2018 there was a slight drop in the average sold price from $333,396 in June 2018 to $320,710 in July 2018 which is a decrease of -3.8%. We experienced a similar drop in the average sold price from June 2017 to July 2017 of -2.6% which indicates this is normal for the market unless we continue to experience price decreases in the following months. Since August 2017 (12 months ago), the average days on market has decreased approximately -10.4% (down from last month) and the number of sold transaction has increased approximately +3.4% (down from last month).
Since January 2018 we have seen four sharp trends: The average days on market have decreased -20.0%, the number of sold transactions has increased +37.6%, months of inventory have decreased -46.9% and number of new listing has decreased -14.2%. Should this trend continue throughout 2018 we can expect another year of appreciation above the national average in the Phoenix real estate market. Historically, 19,834 homes for sale represent the lowest number of homes this market has seen for over a decade. This low number of homes for sale indicates we are in a seller’s market (low supply and increased demand). Property owners are not putting their homes on the market because they are holding off to accumulate additional equity from the market. Hopefully, this roller coaster will come to a slow end instead of everyone wanting to put their homes on the market at the same time.
Real estate prices will continue to increase and interest rates are planned to increase in 2018 so if you are thinking about buying a home this year will be the time to buy before you get priced out of the market. Give us a call to discuss your best buying or selling strategy, TODAY!!