For a more thorough understanding of how the market is shifting and how this affects you, please give me a call and we can talk about it.
Distressed Sales Analysis:
April statistics are having us see green! Green is the color of non-distressed sales, and we are seeing these properties become a much larger piece of the pie! We continue to shift toward a more traditional market—
April bank-owned sales decreased by 2.7%. Short sales decreased by .6%, and traditional sales INCREASED by 3.3%.
This statistic means that the competition from foreclosure properties continues to decrease while traditional sales from sellers with equity continue to increase the percentage of activity in our current market.
Sellers and buyers need to monitor this trend to see how the market continues to respond to the current inventory.
Average Sales Analysis:
Attention! For 8 months, we have seen the average sales price increase from what appears to be the bottom of the market that we hit in August of last year. April saw an increase in our average sales price by 5.2% to $197,336. This is highest average since December of 2008!! Sellers need to be careful not to get too excited and suddenly think they can get more for their homes. Rather, it is now more important than ever that sellers continue to price according to the market and understand how the current market will apply to your individual area and/or home. It will also be important to monitor the impact this trend begins to have on appraisals and finding qualified buyers at these higher prices.
For buyers, it is absolutely critical to be aware of this shift in the price of homes.
This increase means that buyers once again have less buying power than they did in the prior month.
There is no doubt that the low inventory has created competition for the current inventory, and that this high demand is impacting prices. The days of buying a $60,000 home may be gone! More than ever, you need to work with your real estate professional to make sure you have the best possible information regarding the market value of homes and to carefully monitor this trend to see how it will impact the availability, pricing, and terms associated with purchasing a home.
Active Listings Analysis:
ATTENTION! April saw the month end with only 10,196 active residential listings in Maricopa County! This is by far the lowest number of active residential properties listed in the MLS
in the 36-month reporting period – and it is a 9.8% DECREASE over the prior month.
Sellers need to make sure that they continue to watch this trend to determine how their homes should be priced in order to be competitive AND the terms that will need to be available for prospective buyers in order to take advantage of this market.
The current market means that buyers continue to have even fewer homes to consider than in prior months. Continue to monitor this statistic, as it WILL be the statistic that indicates how much inventory you will have to preview and how quickly you will need to act … the lower the number, the more likely the competitiveness for lower priced homes will remain part of the current market. As always, market activity is local and should be researched with your real estate professional to determine the activity and desirability of the homes that are of interest to you.
Months of Inventory Analysis:
(This report has been generated by taking the number of active listings and dividing it by SALES for the past month)
The high demand for residential properties in Maricopa continues to have a significant impact on the available inventory. The month of April saw a 4.9% DECREASE in this number, resulting in only 1.37 months of inventory. This is by far, the lowest number we have seen in the 36-month reporting period. This is a dramatic change from the 22.74 months of inventory we had a few years ago. This statistic means, that on average, we continue to remain in an even stronger “seller’s market” that is identified when this statistic reflects less than 5 months of inventory. Although this traditionally means that sellers will have more control in a sales transaction than the buyer, it is essential that you are meeting with your real estate professional to determine the ACTUAL market in your area. You may find that you have more or less control than the average.
Buyers will want to seriously monitor this as well, as it indicates that there is extremely low inventory. We remain in a very strong seller’s market. A seller’s market traditionally gives less control to buyers and can create significant competition for the current inventory. The current low inventory is resulting in homes selling more quickly, at a higher price, and with fewer concessions for buyers. However, the type of market will vary from price range to price range” and even area to area. Work with your real estate professional to make sure you understand the type of market you are in.
Would you like to know what is happening in your neighborhood?
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Do you need help deciding whether to sell or not or would you like to know if now is the right time to buy?