The current real time market profile shows there were approximately 9,849 new listings (up 901 listings from last month) on the market in August 2017 and 8,263 sold transactions (up 239 listings from last month). This is the first time in over a year the number of new listings exceeded the number of sold transactions. Overall, the inventory of homes on the market is still very low where in August 2017 there were 19,242 homes (down 632 listing from last month) on the market which is down -26.2% as compared to the number of home on the marker in August 2014. In August 2015 there were 21,487 homes, in August 2014 there were 26,076 homes and in August 2013 there were 20,571 homes for sale on the market. Due to the declining in average days on market since February 2017 this shows buyer’s demand is strong where inventories may continue to be low and drive up prices.
The average sold price increased from $296,650 in July to $299,435 in August which is a +0.9% increase. Historically, since 2014 the average sold price has declined from July to August and doesn’t start to increase until late September and early October. Overall, the average sales price since September 2016 (12 months ago) still has an appreciation rate approximately 6.1% (up from last month) or from $282,128 in September 2016 to $299,435 in August 2017. In 2014 real estate prices only appreciated 4.5%, in 2015 5.5% and in 2016 4.2% where according to the National Association of Realtor the average annual appreciation rate is 5.4%. Therefore, Phoenix is still above the national appreciation rate. Since September 2016 (12 months ago), the average days on market has decreased approximately -8.2% (up from last month) and the number of sold transactions has increased approximately +11.0% (up from last month).
The volume of foreclosure purchases since September 2016 (12 months ago) has decreased approximately -45.7% and the volume of short sales decreased of approximately -35.6%. The current percentage of foreclosure sales and short sales sold is only 1% of the market which indicates a healthy market. Unfortunately, there are still some homeowners who bought between 2005 and 2007 that are still up-side-down as shown in the yearly average sold price chart above.
Since September 2016 (12 months ago), the number of homes for sale on the market have decreased approximately -11.5% or 21,738 homes for sale on the market to a gradual decrease of 19,242 homes (Down 2,496 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 will continue to increase and interest rates are planned to increase in 2017 so if you are thinking about buyer 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!!