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Phoenix Residential Market ~ February 2016

Real Time_Supply

Pie Chart_Market

Average Sold Price_Monthly

Average Days on Market_Monthly

Active vs Sold Transactions

Foreclosures_Monthly

Short Sales_Monthly

The current real time market profile (properties for sale) shows there were approximately 10,648 new listings (up 94 listings from last month) on the market in February 2016 and 5,833 sold transactions. Since the beginning of the year the number of new listings has exceeded the number of sold transactions which the recent interest rate increase by the Fed may entice property owners to sell and tighter mortgage underwriting guidelines for borrowers are preventing new purchases.

Since March 2015 (12 months ago), the average sold price has increased approximately +5.9% (up from last month), the average days on market have decreased approximately -9.8% (up from last month) and the number of sold transactions have decreased approximately -25.5% (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 price decreases from June to September. If the number of new listings continues to increase and the number of sold transactions decreases, then prices in the summer may start to decrease again in 2016. Let’s hope this summer’s buying season is better than last year.

The volume of foreclosure purchases since March 2015 (12 months ago) has decreased approximately -38.8% and the volume of short sales decreased of approximately -28.6%. 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 consistently decreased 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 March 2015 (12 months ago), the number of homes for sale on the market have decreased approximately -1.4% or 25,745 homes for sale on the market to a gradually decrease of 25,221 homes. The total number of listings is still low as compared to 29,308 listings in April 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 investment strategy, TODAY!!

Position Realty
Office: 480-213-5251

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