The number of new listing in the month October 2018 is 9,873 listings (up 650 from last month) which is slightly lower than last year at 9,974 listing in October 2017. The overall number of active listings is 19,230 which is 1,204 less listings than in October 2017. The whole year of 2018 there have been less listing on the market than in 2017. As for the number of sold transactions, we had fewer transactions in October 2018 of 7,358 transactions (down 66 from last year) but for most of the year of 2018 we’ve had more transaction than in 2017. This lower supply of listing and higher amount of transaction is causing real estate prices to continue to appreciate.
The Phoenix Housing Market ended 2017 with an overall annual appreciation rate of approximately +9.0%. As of January 2018 the Phoenix market has only appreciated 3.6% where this lack luster appreciated rate was hindered by a sharp drop in price from $333,392 in June 2018 to $320,710 in July 2018. Since July 2018 there has been a second uptick in the average sold price from $320,710 in July to $326,390 in October which is an increase of only +1.8%. We experienced a similar uptick in price in 2017 but this uptick did not begin until October 2017 to finish off the year at a +9.0% appreciation rate. Since November 2017 (12 months ago), the average days on market has decreased approximately -11.4% (down from last month) and the number of sold transaction has increased approximately +1.9% (up 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 +18.4%, months of inventory have decreased -33.1% and number of new listing has decreased -6.7%. These are all strong trends but the sold average price has not appreciated as much as last year which could be caused by the rise in interest rates. Historically, 19,230 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 like in 2008.
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!!