Our June 2017 Phoenix Area Housing Market Report will show home sales have continued to be very strong. So strong in fact, 2017 is on pace to be the third-highest sales year in our local history. You’ll see why we’re still in a seller’s market and why this is a good time to sell a home.
The below table shows the top 10 years in housing sales (by average monthly volume). Included is a monthly sales chart:
|Year||Average Monthly Sales|
|Thru JUNE ’17||8,374|
Regarding the table: we’re halfway through the year and sales will start to slow. If 2017 is not the third-highest sales year in local history it will definitely be the 4th. Note the two highest sales years. 2005 was the top of the market and 2011 was the bottom of the market.
Regarding the chart: sales always peak in the summer, and this year is no different. It’s rare, in any Phoenix Area Housing Market Report, to see 10,000 sales in a month. We came close in May and drifted a little further away in June. July is the only other month with any chance at 10,000 sales, historically speaking. Year-over-year home sales are a good indicator of growth. There was a 7% increase in home sales over June 2016.
Supply and demand are 2 key factors in determining a buyers or sellers market. You’ve seen sales are strong in this Phoenix Area Housing Market Report.
The supply of homes, or rather the lack of supply, is a good reason we’re in a strong seller’s market. The “normal” level of housing inventory is 26,000 homes! The Phoenix housing market is 30% down on inventory. It’s little wonder it’s a perfect time to sell a home, especially in the under $300,000 market where housing inventory is exceptionally low. Many sellers are getting multiple offers. That brings an opportunity to select (rather than accept) a buyer who offers the best terms.
After reading this Phoenix Area Housing Market Report you know housing prices are up. Prices are up $11 per square foot from last June 2016, or about 7.8%. That is a good deal of appreciation. The graph indicates a fairly stable price per square foot over the last 3 months. We can expect stable appreciation over the rest of this year.
Here’s a little perspective on price per square foot:
- $98 per square foot in early 2000
- $110 per square foot before the real estate boom in early 2004
- $184 per square foot at the top of the market in early 2006
- $88 per square foot after a three-year decline in 2009
- $77 per square foot in early 2011 at the bottom of the market
- $152 per square foot in June 2017 after 6 years of recovery and purging foreclosures
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