The number of new listing in the month September 2018 is 9,223 listings (down 780 from last month) which is lower than last year at 9,646 listing in September 2017. The overall number of active listings is 18,181 which is 1,588 less listings than in September 2017. The whole year of 2018 there have been less listing on the market than in 2017. As for the number of sold transactions, we had fewer transactions in September 2018 of 7,075 transactions (down 376 from last year) but for most of the year of 2018 we’ve had more transaction than in 2017. This lower supply of listing and higher amount of transaction is causing real estate prices to continue to appreciate.
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 starts to slow down in August once kids go back to school. Since July 2018 there has been a second uptick in the average sold price from $320,710 in July to $326,019 in September which is an increase of +1.7%. We experienced a similar uptick in price in 2017 but this uptick did not begin until October 2017 to finish off the year at a +9.0% appreciation rate. Since October 2017 (12 months ago), the average days on market has decreased approximately -4.6% (up from last month) and the number of sold transaction has decreased approximately +4.7% (down from last month).
Since January 2018 we have seen four sharp trends: The average days on market have decreased -17.3%, the number of sold transactions has increased +13.9%, months of inventory have decreased -34.1% and number of new listing has decreased -12.9%. Should this trend continue throughout 2018 we can expect another year of appreciation above the national average in the Phoenix real estate market. Historically, 18,181 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 like in 2008.
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!!