The current real time market profile shows there were approximately 6,262 new listings (down 2,290 listings from last month) on the market in December 2017 and 7,204 sold transactions (down 14 listings from last month). This is the first month after four consecutive months the number of new listings is below the number of sold transactions. Lower supply of properties on the market will drive prices up further if the number of sold transaction continues to be above the number of new listings. This is normal to see the number of new listing drop during the month of December due to the holidays. The market will usually start to pick up in February or March and be in full swing during the summer months. Overall, the inventory of homes on the market is still very low where in December 2017 there were 19,688 homes (down 821 listing from last month) on the market which is down -25.1% as compared to the number of home on the marker in December 2014.
The Phoenix Housing Market ended the year with an overall appreciation rate of approximately +9.0% (up from last month) or from $283,793 in January 2017 to $309,327 in December 2017. In 2014 real estate prices 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%. The highest apperception rate after the real estate boom was 25.6% in 2012 and 19.8% in 2013. Overall, Phoenix is above the average annual apperception rate for the United States and exceeded the appreciation rate over the last three years. If inventory continues to be low and a strong demand for housing continues in 2018 we will continue to see an appreciation rate above the national average.
The volume of foreclosure purchases since January 2017 (12 months ago) has decreased approximately -38.6% and the volume of short sales decreased of approximately -47.7%. 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 January 2017 (12 months ago), the number of homes for sale on the market have decrease approximately -9.9% or 21,854 homes for sale on the market to a gradual decrease of 19,688 homes (Down 821 homes). The total number of listings is low as compared to 25,960 listings in September 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 2018 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!!