The current real time market profile shows there were approximately 9,332 new listings (up 291 listings from last month) on the market in August 2016 and 7,936 sold transactions. Since August 2016 the overall inventory of homes on the market is down -16.4% as compared to the number of home on the marker in August 2014. Current demand is equivalent to demand for housing experienced in August 2015 but due to the greater demand this year the lower inventory of homes on the market may cause prices to appreciate at a faster rate. There is currently 21,873 listing on the market and 7,963 sold transaction which equates to 2.7 months of inventory on the market. Historically, 2.7 months of inventory on the market 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 August the average sold price increased approximately +1.0% to $275,642 but is still down -2.6% from June 2016 at $282,879. This could be the temporary price decrease due to the upcoming presidential election. Last year’s summer buying season was weak where we saw prices decrease from June to September. This month the number of transaction increased 194 transactions which is a small increase as compared to prior months. Since September 2015 (12 months ago), the average sold price has increased approximately +6.0% (up from last month), the average days on market have increased approximately +7.0% (up from last month) and the number of sold transactions have increased approximately +14.1% (up from last month).
The volume of foreclosure purchases since September 2015 (12 months ago) has decreased approximately -28.1% and the volume of short sales increased of approximately +1.3%. Since August 2013 the number of foreclosures have decreased -228.3% indicating a healthy market. Also, since August 2013 the volume of short sales have decreased -344.2% 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 September 2015 (12 months ago), the number of homes for sale on the market have increased approximately +0.4% or 21,778 homes for sale on the market to a gradual increase of 21,873 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!!