NextHome Valleywide Market Update November 2017

Phoenix Market Update courtesy of Craig and Stacey Akers at NextHome Valleywide.  Contact 480-621-6828 or info@nexthomevalleywide.com for a Seller Solution book that will give you selling tips, pricing, and comparable home sales in your area.

4th Quarter is Good for Buyers!
Supply up 11% since August, Down 12% from 2016

2017-11 Infographic

For Buyers:

The 4th quarter is a good time to be a buyer seasonally. After April or May, buyer activity gradually declines every month with the 4th quarter seeing the lowest level of contracts in escrow. This is typical within all price ranges. Meanwhile, supply levels tend to rally in October with new listings after becoming stale over the summer months. This provides the remaining buyers with more listings to choose from and fewer competing offers. A welcome relief for many, however this seasonal lull doesn’t mean buyers will win with low offers. For most buyers, this environment only provides fewer competing offers on their preferred properties. It doesn’t necessarily mean they’ll get a bargain.

For Sellers:

While 2017 is still outperforming the last 5 years in sales volume, contracts in escrow have declined 30% since peaking in April. Supply is up 11% after hitting a low in August, bringing current listing counts within 1% of where they were in April. While seasonal and expected, this environment creates a more competitive environment for sellers compared to the Spring season. As a result, the number of price reductions counted every week has gone up 20% since the beginning of September. Expect price reductions to remain high as sellers push to get their properties under contract before Thanksgiving.

Contact the real estate experts at NextHome Valleywide in Chandler, AZ at 480-621-6828 for more information.  If you are currently looking at buying or selling a home in the Phoenix, Scottsdale or East Valley area and are not sure where to turn, search for homes at ChandlerAreaHomeSearch.comwhere you can find single family homes, golf and lakefront properties, 55+ communities, townhomes and much more. Visit our blog at NextHome Valleywide for a monthly Phoenix Market Update.

Commentary written by Tina Tamboer, Senior Real Estate Analyst with The Cromford Report ©2017 Cromford Associates LLC and Tamboer Consulting LLC

Phoenix Market Update February 2017

Phoenix Market Update courtesy of Craig and Stacey Akers at NextHome Valleywide.  Contact 480-621-6828 or info@nexthomevalleywide.com for a Seller Solution book that will give you selling tips, pricing, and comparable home sales in your area.

 

More Qualified Buyers Expected in 2017
Supply is Down 9.3%, Buyer Demand is Up 4.5%!

Phoenix Metro Infographic - 2017-02

 

For Buyers:
Buyers be prepared for another year of increased competition for ex-isting active listings in the Phoenix Metropolitan Area, partly because of over 50,000 more foreclosures due to be removed from credit reports in 2017. That’s in addition to the nearly 50,000 foreclosures that were re-moved from credit reports in 2016. A foreclosure can suppress a credit score by 100 points in many cases, so their removal is resulting in a high-er number of qualified buyers and a 20% increase in the rate of approved mortgage applications over the past 2 years. Increases in buyer activity are expected across all price points under $1,000,000.
For Sellers:
It’s starting off very good for existing sellers thus far, as January was the 3rd slowest month for new listings on the market dating back to 2001. This, combined with increases in demand, is resulting in active listings remaining very low when it typically rises in the first quarter just before spring buyer season. New home builders have been creating new supply for buyers, mostly in the $300,000 to $500,000 price range, especially in North Phoenix, South Phoenix, Mesa, Gilbert, Peoria and Buck-eye. With the supply and demand imbalance giving sellers a negotiating advantage, it’s reasonable to expect more appraisals coming in lower than negotiated sales price and buyers who are either unwilling or unable to cover the difference.

Contact the real estate experts at NextHome Valleywide in Chandler, AZ at 480-621-6828 for more information.  If you are currently looking at buying or selling a home in the Phoenix, Scottsdale or East Valley area and are not sure where to turn, search for homes at ChandlerAreaHomeSearch.com, where you can find single family homes, golf and lakefront properties, 55+ communities, townhomes and much more. Visit our blog at NextHomeValleywide for a monthly Phoenix Market Update.
Commentary written by Tina Tamboer, Senior Real Estate Analyst with The Cromford Report ©2017 Cromford Associates LLC and Tamboer Consulting LLC

 

Phoenix Market Update January 2017

Phoenix Market Update courtesy of Craig and Stacey Akers at NextHome Valleywide.  Contact 480-621-6828 or info@nexthomevalleywide.com for a Seller Solution book that will give you selling tips, pricing, and comparable home sales in your area.

2016 Sales up 7% over 2015
2016 Median Sales Price 7.7% Higher than 2015

Welcome 2017!  The headlines these days are full of projections and reflections for the Phoenix Metropolitan Area residential real estate market.  To complement our monthly measures here are some year-end numbers to reflect on.

2016 MLS Sales – Up 7.0% overall compared to 2015
·        72.9% of sales were under $300,000 (# of sales up 3.4%)
·        19.6% of sales were between $300,000 and $500,000 (# of sales up 20.2%)
·        6.1% of sales were between $500,000 and $1,000,000 (# of sales up 15.4%)
·        1.4% of sales were over $1,000,000 (# of sales up 8.1%)

2016 New Listings – up 4.6% overall compared to 2015
·        65.8% of new listings were under $300,000 (# of new listings up 0.8%)
·        22.0% of new listings were between $300,000 and $500,000 (# of new listings up 13.5%)
·        9.2% of new listings were between $500,000 and $1,000,000 (# of new listings up 13.6%)
·        3.0% of new listings were over $1,000,000 (# of new listings up 5.7%)

2016 Appreciation based on Annual Sales Price per Square Foot – up 5.4% from 2015
·        Under $300,000 – up 7.6%
·        $300,000 – $500,000 – up 2.0%
·        $500,000 – $1,000,000 – Less than 1% change
·        Over $1,000,000 – Less than 1% change

It’s been a good news/bad news year for sellers over $500,000.  The good news is that more buyers purchased in the higher price ranges in 2016 than in 2015.  The bad news is the neighbors also noticed increased demand and listed their homes too, increasing the number of new listings on the market simultaneously.  This increased supply, combined with builders getting in on the action over $250,000, created a more competitive and balanced market and put price increases in check.

It’s been good news/bad news for buyers under $300,000.  The good news is their homes have appreciated nicely over the past year.  The bad news, finding move-in ready homes and winning the bid was more stressful and competitive than many expected.  Especially for single family homes under $200,000.  (Yes, they do exist.)

Looking forward in the short term, the market can expect more buyers emerging with improved credit scores as we move farther away in time from the foreclosure and short sale crisis.  Recent announcements regarding FHA loan limit increases and lower mortgage insurance premium fees signify a loosening up in lending that will contribute to more demand for listings under $300,000. Higher interest rates will cause some buyers to purchase smaller homes than they anticipated, putting even more pressure on the market under $300,000; which is already short of supply for existing demand.  With nearly 73% of all sales in this price point, it’s reasonable to expect appreciation to continue to be positive for the Phoenix Metropolitan Area overall.

Commentary written by Tina Tamboer, Senior Real Estate Analyst with The Cromford Report ©2016 Cromford Associates LLC and Tamboer Consulting LLC

Phoenix Market Update December 2016

Phoenix Market Update courtesy of Craig and Stacey Akers at NextHome Valleywide.  Contact 480-621-6828 or info@nexthomevalleywide.com for a Seller Solution book that will give you selling tips, pricing, and comparable home sales in your area.

 

Listings Under Contract Up 2.6%

Monthly Closed Sales Up 19%

Phoenix Metro Infographic - 2016-12 (1)

For Buyers: There’s both good and bad news for first-time home buyers this month. The good news is that there’s been a 22% increase in single family active listings asking between $175,000- $200,000 over the last 10 weeks, going from 1,065 to 1,295. Current inventory is 10% higher than where it was in week 49 of last year, adding some much needed choice to a high demand price range. The added supply is not universal across the valley; increases have been marked specifically in Buckeye, Surprise, Sun City, Peoria and Mesa. The bad news for home buyers is that supply overall is down 3.7% while the level of competing buyers is remaining seasonally consistent. The Southeast Valley specifically has not seen the typical increase in supply that happens this time of year. This indicates that the area will kick off 2017 with low supply just before the expected increase in buyer activity come February. In this case, the cost of waiting to purchase will be a lack of choice and possibly having to compromise on the condition or location of the property they choose to buy.

For Sellers: Bad news for buyers usually translates into good news for sellers, especially after positive news reports of Realtor.com ranking Phoenix as the #1 projected real estate market in the country for 2017. However, it’s still not a market to be overpriced regardless of the strong demand for homes. Some price ranges have more competing listings than others, especially in areas such as North Phoenix, Mesa, Gilbert and Peoria where there is competition from new home subdivisions. Permits for single family homes have been on the rise to accommodate the demand. This provides more choice for buyers in those areas, balances out the market and keeps annual appreciation in check. The areas projected to have the highest appreciation rates are those where there is a high level of fix and flip activity along with a more affordable price range under $175,000.

Contact the real estate experts at NextHome Valleywide in Chandler, AZ at 480-621-6828 for more information.  If you are currently looking at buying or selling a home in the Phoenix, Scottsdale or East Valley area and are not sure where to turn, search for homes at ChandlerAreaHomeSearch.com, where you can find single family homes, golf and lakefront properties, 55+ communities, townhomes and much more. Visit our blog at NextHomeValleywide for a monthly Phoenix Market Update.

Commentary written by Tina Tamboer, Senior Real Estate Analyst with The Cromford Report ©2016 Cromford Associates LLC and Tamboer Consulting LLC

Phoenix Market Update Nov 2016

Phoenix Market Update courtesy of Craig and Stacey Akers at NextHome Valleywide.  Contact 480-621-6828 or info@nexthomevalleywide.com for a Seller Solution book that will give you selling tips, pricing, and comparable home sales in your area.

New Listings Under $300,000 Down 10% in October

Average Sales Price per Square Foot Up 8%

 

Phoenix Market Update November 2016

For Buyers: October was a disappointing month for new active listings under $300,000. Normally October is a good month to buy as there is a boost of new listings without an increase in competing buyers. This rang true for new listings between $300,000 and $1,000,000 (up nearly 7%). New listings over $1,000,000 were down by nearly 14%, however this price point has been suffering from oversupply most of the year and the drop only equated to 57 fewer new listings in the past month. More importantly, new listings under $300,000 were down by nearly 10% with 669 fewer new listings than this time last year. For a price range that is already undersupplied for the current demand, this was not good news for buyers. The fact that sales under $300,000 comprised 72% of all sales in the past month tells us to expect prices to continue rising with the current lack of new supply hitting the market.

For Sellers: Undersupply for listings under $300,000 has had a positive effect on sellers. The Monthly Average Sales Price per Square Foot in this price point went up 8.4% from $110.42 last November to $119.72 this November. The $300,000 – $500,000 price range saw this measure go from $146.03 to $151.50, up 3.7%. The $500,000 -$1,000,000 price range increased 1.2% from $196.65 to $199.03; the Over $1,000,000 price range increased by 12.3% from $308.73 to $346.68 (with only 108 sales in this price point, average price measures will fluctuate dramatically from month to month). Average Days on Market is still very good for sellers under $300,000 at 61 days. The measure increases to 91 days within $300,000-$500,000; 142 days within $500,000-$1,000,000; and 191 days Over $1,000,000.

Contact the real estate experts at NextHome Valleywide in Chandler, AZ at 480-621-6828 for more information.  If you are currently looking at buying or selling a home in the Phoenix, Scottsdale or East Valley area and are not sure where to turn, search for homes at ChandlerAreaHomeSearch.com, where you can find single family homes, golf and lakefront properties, 55+ communities, townhomes and much more. Visit our blog at NextHomeValleywide for a monthly Phoenix Market Update.

Commentary written by Tina Tamboer, Senior Real Estate Analyst with The Cromford Report ©2016 Cromford Associates LLC and Tamboer Consulting LLC