The current real time market profile shows there were approximately 8,948 new listings (down 1,231 listings from last month) on the market in July 2017 and 8,024 sold transactions (down 1,599 listings from last month). This is the first time in over a year 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 July 2017 there were 19,874 homes (down 1,365 listing from last month) on the market which is down -26.1% as compared to the number of home on the marker in July 2014. In July 2015 there were 22,129 homes, in July 2014 there were 26,906 homes and in July 2013 there were 19,724 homes for sale on the market. Due to the declining in average days on market since February 2017 this shows buyer’s demand is strong where inventories may continue to be low and drive up prices.
The average sold price dropped from $304,678 in June to $296,650 in July which is a -2.6% decrease. 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. Overall, the average sales price since August 2016 (12 months ago) still has an appreciation rate approximately 7.6% (down from last month) or from $275,642 in August 2016 to $296,650 in July 2017. In 2014 real estate prices only 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 still above the national appreciation rate. Since August 2016 (12 months ago), the average days on market has decreased approximately -14.5% (down from last month) and the number of sold transactions has increased approximately +0.8% (down from last month).
The volume of foreclosure purchases since August 2016 (12 months ago) has decreased approximately -42.2% and the volume of short sales decreased of approximately -57.8%. 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 August 2016 (12 months ago), the number of homes for sale on the market have decreased approximately -9.1% or 21,873 homes for sale on the market to a gradual decrease of 19,874 homes (Down 1,365 homes from last month). The total number of listings is low as compared to 26,903 listings in July 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 2017 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!!