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 June 2016 Market Stats

Canadians & Institutional Investors Selling Valley Homes

According to the Arizona Multiple Listing Service official blog by Tom Ruff,  Canadians and Institutional Investors are taking advantage of Phoenix's real estate market recovery. A few years ago, between 2009- 2013, Canadians were buying Phoenix Metro real estate backed by a strong CAD dollar vs US dollar while Large institutional buyers were bent on building a pool of homes for renters. The real estate market was down. 

Current Day: The Phoenix Metro/Maricopa housing market is at it's strongest since the market crashed in 2007. US dollar buys 1.29 CAD dollar, home prices are up, inventory is down, mortgage rate is down. Significant home appreciation gains are seeing 9 Canadians selling vs 1 buying. More renters have better jobs and they are moving out and going to the homebuyer pool. If this trend continues, more instututional investors will be selling rental properties.

Home Sales Up

In the Phoenix Metro real estate market, conditions continue to favor sellers over buyers in the lower price range, even as fewer houses become available  compared to the same time last year. According to the latest sales data provided by the Arizona Multiple Listing Service in July 2016, total home sales in June 2016 show a 2.1% increase vs last month to end at 8,861 units. This represents a 2.1% increase month over month  and year-over -year increase of +2.2%. Download the June 2016 ARMLS market statistics PDF 

 

Mesa AZ Market Report
Chandler AZ Market Report
Gilbert AZ Market Report
 Queen Creek AZ  Market Report

Home Prices Up

Prices in the Maricopa real estate market continued  to climb in June 2016. The median price of a single-family home in the Phoenix Metro area increased 7 percent between June 2015 and June 2016, to $230,000. Average home prices rose 4.3 percent during that period to $282,600. 

Inventory Down

Total Valley home inventory has a month-over-month loss of -4.7% while year-over-year reflects an increase of +5.1%. Months supply of inventory for May was 2.98 , June inventory was down to 2.78.

Buyer

"Sustained job growth as well as this year's descent in mortgage rates is undoubtedly driving the appetite for home purchases," Lawrence Yun, NAR Chief economist

Phoenix Metro is a great place to live, work and buy a home! Do you worry about not having a high credit score and funds for downpayment? Credit score requirements to be approved for a mortgage continue to fall year over year. In May 2016, the average FICO scores of approved FHA loans is 686. The number is higher for conventional loans at 754. 

Two weeks ago the US senate approved a bill that would remove burdensome condo restrictions that will help more prospective buyers access financing. This is a huge win for prospective first-time and low- to moderate-income buyers interested in purchasing a condo.

Think twice before signing another rental contract! Rents continue to surge. A recent Rent.com survey revealed that 88% of property managers raised their rent in the last 12 months. 55% are more likely to bring in new renters at a higher rate than renegotiate and renew a lease with the current tenant. 

Mortgage rates are still at near record lows. If you are in the market to buying a home, it's a great time to lock in a rate. 

Sellers

"A silver lining from tight inventory is that homes are selling faster, which benefits sellers,"  says Trulia's top economist Ralph McLaughlin.

The average days on market before a home sells is now even shorter at 76 days. Of course, some homes are selling much faster than that. Demand has remained strong throughout the summer and continues to outpace the supply of homes for sale. Generally higher home prices, limited availability, and quick sales of those homes that do come up for sale make the Phoenix Metro real estate market a favorable environment for sellers.

Take advantage of out FREE home value estimator tool to find out how much your home is worth in today's market. 

Blended statistics will not be as accurate as a more detailed report as market conditions vary per area. The Barton Group provide expert real estate services in the SouthEast Valley area: Mesa, Gilbert, Chandler, Queen Creek. Contact us to see how statistics impact the neighborhood where you are considering selling or buying. 

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June 2016 Metro Phoenix Real Estate Market Update