The current real time market profile shows there were approximately 10,041 new listings (down 1,013 listings from last month) on the market in May 2016 and 8,844 sold transactions. Since the beginning of the year the number of new listings has exceeded the number of sold transactions by +13.5% but the overall inventory of homes on the market is down -15.8% as compared to the number of home on the marker in May 2014. Demand is equivalent to demand experienced in May 2015 but with lower inventory of homes on the market home prices will start to appreciate at a faster rate.
Since June 2015 (12 months ago), the average sold price has increased approximately +3.9% (up from last month), the average days on market have decreased approximately -2.6% (down from last month) and the number of sold transactions have increased approximately +1.7% (up from last month). Since the month of September 2015 the average sold price has formed a new upward trend where each month the average sold price has gradually increased. Last year’s summer buying season was weak where we saw prices decrease from June to September. As long as buyer demand stays strong until September we should continue to see the Phoenix real estate market appreciate over the summer months.
The volume of foreclosure purchases since June 2015 (12 months ago) has decreased approximately -43.8% and the volume of short sales decreased of approximately -30.0%. Since November 2014 the volume of foreclosure purchases went up and now the trend is back down once again. Also, since August 2013 the volume of short sale purchases have decreased -365.3% 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 depending if they purchased their homes between 2005 and 2007.
Since June 2015 (12 months ago), the number of homes for sale on the market have increased approximately +10.5% or 22,475 homes for sale on the market to a gradual increase of 24,840 homes. The total number of listings is low as compared to 28,776 listings in May 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!!