The current real time market profile shows there were approximately 6,152 new listings (down 1,962 listings from last month) on the market in December 2016 and 7,157 sold transactions. The overall inventory of homes on the market in December 2016 is 22,520 which is down -13.3% as compared to the number of home on the marker in August 2014. In December 2015 there were 23,353 homes, in December 2014 there were 26,270 homes and in December 2013 there were 26,463 homes for sale on the market. This declining number of homes for sale on the market is a good for sellers if 2017 brings added buyer demand due to changes planned to be enacted by our new president.
In July 2016, the average sold price took a steep dive south to $272,845 but the average sales price has recovered to price levels seen in the beginning of the summer at $282,054 for an overall appreciation rate for the year at +4.2%. Since 2014 this appreciation rate is typical for the Phoenix market since the appreciation rate in 2015 was +5.5% and in 2014 the appreciation rate was +4.5%. Another interesting factor to consider is how our new president and the Fed’s plans to raise interest rates in 2017 will affect real estate prices in the near future. Since January 2016 (12 months ago), the average days on market has decreased approximately -3.8%% (up from last month) and the number of sold transactions has increased approximately +37.8% (up from last month).
The volume of foreclosure purchases since January 2016 (12 months ago) has decreased approximately -24.3% and the volume of short sales decreased of approximately -9.0%. Since August 2013 the number of foreclosures have decreased -301.3% and the current percentage of foreclosure sales is only 2% of the market which indicates a healthy market. Also, since August 2013 the number of short sale transactions have decreased -516.2% and the current percentage of short sales sold is only 2% of the market. Unfortunately, some homeowners who bought between 2005 and 2007 are still up-side-down as shown in the annual average sold price chart above.
Since January 2016 (12 months ago), the number of homes for sale on the market have decreased approximately -5.0% or 23,699 homes for sale on the market to a gradual decrease of 22,520 homes (Down 610 homes from last month). 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), interest rates are planned to increase in 2017 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!!