The current real time market profile shows there were approximately 8,552 new listings (down 1,422 listings from last month) on the market in November 2017 and 7,218 sold transactions (down 206 listings from last month). This is the fourth consecutive month 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 November 2017 there were 20,509 homes (up 75 listing from last month) on the market which is down -20.2% as compared to the number of home on the marker in November 2014. In November 2015 there were 23,585 homes, in November 2014 there were 26,270 homes and in November 2013 there were 26,836 homes for sale on the market. The average days on market have been in decline since February 2017 but in November the average days on market increased 4.6% but this is normal due to the holidays.
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. Despite the decrease in the number of transaction since August 2017 the average sold price has continued to increase from $297,070 in October to $308,202 in November which is a 3.7% appreciation rate. Overall, the average sales price since December 2016 (12 months ago) has an appreciation rate of approximately +9.3% (up from last month) or from $282,054 in December 2016 to $308,202 in November 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%. Therefore, Phoenix is above the historical appreciation rate as long as prices continue to increase in December.
The volume of foreclosure purchases since December 2016 (12 months ago) has decreased approximately -39.9% and the volume of short sales decreased of approximately -59.5%. 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 December 2016 (12 months ago), the number of homes for sale on the market have decreased approximately -8.9% or 22,520 homes for sale on the market to a gradual decrease of 20,509 homes (Down 2,011 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!!