Phoenix Metro Real estate market data provided by The Barton Group | 480.242.3079
Strong Phoenix Metro Home Sales
The holiday season is here! Hope you and your family's Thanksgiving celebration was stuffed with happiness. The weather has cooled but Phoenix Metro home sales is still on fire, at least compared to 2015 figures. Per the latest sales data presented by the Arizona Multiple Listing Service, total home sales in October 2016 ended at 6,981 units, a 10.7% increase compared to last year. Sales are down by 4.7% vs last month, which is something normal and expected due to seasonal patterns in the real estate market. Download the Oct 2016 ARMLS market statistics PDF
"October's strong sales gain was widespread throughout the country and can be attributed to the release of the unrealized pent-up demand that held back many would-be buyers over the summer because of tight supply. Buyers are having more success lately despite low inventory and prices that continue to swiftly rise above incomes." Lawrence Yun - NAR Chief EconomistMesa AZ Market ReportChandler AZ Market ReportGilbert AZ Market ReportQueen Creek AZ Market Report
There are thousands of homes to buy, but inventory of homes for sale in Phoenix Metro has been low for the past 3 years. There has not been a 6 months' inventory in Phoenix Metro since 2013. A six months' supply of homes for sale is considered the benchmark for a balanced market.
Conditions remain unchanged in October with a flat months supply inventory of Metro Phoenix homes (up by only .30 vs September 2016).
In the Southeast Valley area where the Barton Group specialize, we have fewer active listings across ALL price ranges.
Below $200K - supply down 25%, sales down 7%, pricing up 7%
$200K-$500K - supply down 8%, sales up 33%, pricing up 4%
Over $500K - supply down 2%, sales up 38%, pricing up 2%
What can our newly elected president do to help resolve the shortage of homes for sale? Trulia's chief economist Ralph McLaughlin suggests the following:
- To focus on policies that encourage existing owners to sell and homebuilders to build, rather than fixating on policies that boost demand.
- Implement policies that would encourage investors to sell homes they bought during the foreclosure crisis, many of which are suitable for starter home buyers. Such policies could include a reduction in capital gains taxes for homes sold by investors to owner-occupiers, an increase in tax rates on rental income, or both.
Home Prices Up
Home values are increasing due to home appreciation. Coupled with the current low inventory situation and strong demand, the median list price and sales price of homes for sale in the Valley continue to rise. The median sales price of a single-family home in the Phoenix Metro area increased 7.9 percent between October 2015 and October 2016, to $229,900.
The strongest areas for appreciation in Southeast Valley are currently:
- Mesa 85201 (+14.0%)
- Mesa 85204 (+12.6%)
- Gilbert 85297 (+10.4%)
Mortgage rates have risen since last month to 3.94% last week for a fixed, 30 year rate with no points. This is a big jump from 3.5% but still below where we started 2016, at 3.97%. It is still significantly lower than they have been for the last 4 decades.
Any increase in interest rate will impact your monthly housing costs when you secure a mortgage to buy your home. Keep in mind however that buying a home is still way cheaper than renting. Rates would have to go up 9.1% for the reverse to happen.
If you are buying in the $1.5-2.0M, there are tons of options to choose from and home prices have declined in this segment.
NOT buying a million-dollar home? There are opportunities for buyers looking to buy in the lower price ranges. We can help you find them! You can reach us at this number 480.242.3079 or email firstname.lastname@example.org.
Back in the third quarter of 2016, the National Association of Realtors (NAR) reported that homes were selling too quickly on the average. This data came from NAR's recently completed Realtor's Confidence Survey, a survey to member realtors about market conditions in their area. The infographic below shows that from July to September 2016, homes in the state of AZ sold in less than 60 days.
Recently released ARMLS data shows that this frenetic pace has somewhat slowed down- but not by much. If you are selling entry level housing in Maricopa County, priced under 200K, expect it to sell in less than 3 months. With fewer listings across ALL price ranges in SE Valley, it's a seller's market.
Phoenix Metro Real Estate Report Summary
Sales are Up. 6,981 units sold, +10.7% year-over-year, down -4.7% month on month
Inventory Up. Months supply of inventory for September was 3.29 with October currently at 3.59.
Home Prices Rise. October saw a jump in median sales price to $229,900. The median price of homes sold in Oct 2016 is up 7.9% from the previous year's $213,000.
It takes more time to sell your Arizona home. 76 days on the average, +3 days more when compared to last year's figures, +2 days more compared to September 2016.
Find Homes for Sale in SouthEast Valley AZ
Blended market statistics may not reflect the true state of the market in a specific area. If you are looking to buy or sell a home in Chandler, Mesa, Gilbert and Queen Creek, contact us to see detailed market reports in the neighborhood where you are considering selling or buying.