The real estate market in Phoenix hasn’t shown any dramatic changes in quite some time. We’re still in a seller’s market that is being bolstered by a lack of listing inventory. Sales have continued to be fairly strong in 2016.
If you want to sell a home this is a really good time! A lack of inventory, especially for properties under $400,000, is what has kept us in a seller’s market. There are fewer choices for buyers, and sellers have more control over the price they are willing to ask for and accept. In many cases sellers with updated and clean homes are receiving multiple offers for their property.
The real estate market in Phoenix provides a good opportunity for buyers as well, even though prices are increasing through appreciation. That’s because interest rates are teetering on the precipice of increasing. In other words, you can get more home for your money while interest rates are lower.
So here’s the nuts and bolts:
Listings in the Phoenix MLS are down 19% from normal levels. This is been the case since the beginning of 2015. Inventory has been low for 2 years. Generally, people seem to be happy living in their current homes.
Home sales have been unseasonably strong. They did not show any slowdown because of the presidential election. 7,099 sales in October are higher than sales in October 2015, 2014, and 2013. Sales in those years were 6303, 6204 and 6079 (respectively). Additionally, October sales aren’t much lower than the 2016 average of 7,284 per month.
Price per square foot is up to $145 which is a six-year high. As a point of reference, $77 per square foot was the low point of the housing recession in 2011. However, we should not forget that pricing at the peak was almost $180 per square foot. A recent report by Core Logic stated that Arizona was one of 5 states furthest below their peak prices. Core Logic claims we are 22% below the peak pricing of 2006 and 2007. The numbers we keep are right in line with that figure.
You are the best judge of deciding if it’s a good time to buy or sell a home in the current real estate market in Phoenix. If you have a good reason/desire to sell your home then sell it! If you want a new home and it makes sense for you then buy one! Don’t listen to anyone who tells you this is the time to buy or sell. Sales people always say that. Call us for a no-obligation consultation at 602-300-0374.