You may have noticed that prices are going up and there are more sales available around town. But did you know that the majority of these are normal sales and that bank owned properties are a small percentage of our market now. We have also noticed a huge drop in investor purchases because the median range for sales is between $150k to $500k. This is great news for buyers because it means that there will be less competition and more homes available to them. We predict that If the current trend continues then supply will exceed demand by the end of the year. This could mean that the acceleration we have seen in home prices will start to slow down and the Phoenix market will begin to balance out.
We do tend to see a slowdown of demand as we head into the holidays and then things begin to pickup as we head into the spring and summer months. However, single family home sales fell 12% in September compared with August. The numbers are showing that homes are sitting on the market longer and that bidding wars have slowed down quite a bit. The good news for sellers is that the average price per sq foot is expected to continue to rise until the end of the year.
“The number of active single family listings without an existing contract was 15,150 for the Greater Phoenix area as of October 1. This is up a strong 13.0% since September 1. However almost 83% of this supply is priced above $150,000 and 19% is priced over $500,000, so a shortage of supply remains in the lower price ranges. The inventory of single family homes under $150,000 that have no existing signed contract has risen to 52 days from 36 days last month, partly due to a fall in the monthly sales rate for these lower priced homes and partly because supply has increased” (cleartitleaz.com).
What this means for you:
If you are a buyer, this means that it’s the perfect time to set up a search with us and start looking at your options. Even if you are looking to buy a few months out, with the supply going up over the next couple months, it’s a good idea to start picking out locations and looking at what homes are available to you. We can help you select the area that is best for you and your family based on your needs.
If you are a seller, it’s a good idea to get a head start on listing your property. Homes values have gone up but we are seeing that homes may take longer to sell. This means you want to give yourself at least one to two months to get a contract on your property, especially if you are pricing your home in the $150k to $500k range. It’s also good to remember that each home and situation are different. So while some places may go under contract a lot faster and some may take a lot longer, we have simply listed the trends that we are currently seeing. If you don’t know the value of your home and are curious you can check out this link or just give us a call or send an email. We are more than happy to give you a free home evaluation, no strings attached!
If you have any questions or need any help, please don’t hesitate to call or email us today: 602-796-9359 or red.inc@gmail.com
Real Estate Phoenix Blog 
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