The number of new listing this month is 10,670 listings which is back in line with the number of listing back in May 2017 of 10,672 listings. The overall number of active listing is still down as compared to 21,230 listings in May 2017 and 20,808 listing in May 2018 which is a decrease of 422 listing or -2.0% In the past months this difference has been a lot wider where the number of new listings coming on the market is helping with the total number of active listings. As for the number of sold transactions, we had fewer transactions in May 2017 of 9,859 transactions as compared to 10,098 transactions in April 2018. This increase in demand during the summer buying season is causing prices to appreciate at a faster rate than in 2017. Also the low amount of active listings and the high amount of transactions the months of inventory has gone from 3.9 months in January 2018 to 1.81 months in May 2018.
The Phoenix Housing Market ended 2017 with an overall annual appreciation rate of approximately +9.0%. If inventory remain low throughout 2018 and a strong demand for housing continues we can expect the market to continue to appreciation above the national average. Historically, real estate prices don’t start to increase until March as the buying season begins and with the low inventory of homes the market has already appreciated 5.5% from an average sold price of $315,070 in January 2018 to $332,267 in May 2018. Another sign we are in a healthy market is the current percentage of foreclosures and short sales sold remains at only 1% of the total market. Since June 2017 (12 months ago), the average days on market has decreased approximately -7.5% (down from last month) and the number of sold transaction has increased approximately +4.9% (up from last month).
Since January 2018 we have seen four sharp trends: The average sold price has appreciated +5.5%, the average days on market have decreased -17.3%, the number of sold transactions has increased +62.6% and months of inventory have decreased -53.6%. Should this trend continue throughout 2018 we can expect another year of appreciation above the national average in the Phoenix real estate market. Historically, 20,808 homes for sale represent the lowest number of homes this market has seen for over a decade. This low number of homes for sale indicates we are in a seller’s market (low supply and increased demand). Property owners are not putting their homes on the market because they are holding off to accumulate additional equity from the market. Hopefully, this roller coaster will come to a slow end instead of everyone wanting to put their homes on the market at the same time.
Real estate prices will continue to increase and interest rates are planned to increase in 2018 so if you are thinking about buying 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!!