CLOSED SALES REPORT
Sellers: As is typical in March over the past 3 years, last month saw a significant increase in the number of closed sales – a 22.8% increase over the month of February. This is the normal “rebound” we see in activity after the “slump” of January. The statistics show that we had 5,966 residential homes sell in March in Maricopa County compared to 4,858 in the month of February. Although this is good news, sellers need to continue to be diligent in pricing and staging their homes, as we are no longer in a seller’s market. The traditional/balance market means a level playing field for both buyers AND sellers.
Buyers: For buyers, this is great news. It means that buyers are very busy taking advantage of this amazing market due to low interest rates, increased inventory, and more traditional sales from which to choose. The traditional market that we are in now means that there is balance from both the buyer and seller side.
AVERAGE SALES PRICE
Sellers: Last month saw the average sales price increase from $252,201 to $258,535. This is the second highest average sales price in the 36-month period AND the highest average since the lowest average month in July 2010. In this report, March has typically seen an increase in the purchase price. This is great news for sellers; however, as inventory continues to increase, sellers need to be cautious and establish a price that will ensure they are competitive in the market.
Buyers: This statistic is an indicator that buyers still continue to pay more for homes than they have in the past 36 months. Educated and savvy buyers understand that a competitive market gives them fewer options for home choices – even when inventory increases. Although this may vary from area to area and from price range to price range, buyers need to make sure they are fully informed regarding the specific market in which they have an interest. This will give them the best chance of being competitive when making an offer.
Sellers: The month of March saw a slight decrease in the number of active listings. We have a total of 22,174 residential homes actively listed in Maricopa County as of 4/3/14. Sellers need to continue to watch this trend as we begin to see more competition for getting a home sold – we saw our low in this area in May of 2012 when we only had 9,785 active listings. Using a real estate consultant is essential to determine how 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.
Buyers: The current market means that buyers had more homes to consider than last month. Continue to monitor this statistic, as it WILL be the statistic that indicates how many options you will have in your home search 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
Sellers: March statistics showed a 19.1% decrease in the months of inventory when compared to February of this year. Even with this decrease in available inventory, we are still in a “traditional” market. This will be important to monitor, as an increase in the months of inventory is an indicator that there are more homes competing for buyers and more homes are staying on the market. Sellers who want to sell need to ensure that the home price is attractive to buyers with this shift in the market.
Buyers: Buyers will want to monitor this as well, as it indicates how quickly homes are selling when they come on the market. The current inventory is offering fewer options than last month; however, lending options have changed significantly since January 1st. The type of market will vary from price range to price range and even area to area. We encourage you to work with your real estate professional to make sure you understand the type of market you are in.
*This report includes MLS data for the past 36 months in Maricopa County only as provided by the FlexMLS system. Please note that searches fluctuate daily when running these reports; these figures were obtained on 4/3/2014. A reminder that you need to meet with a real estate professional to see how statistics impact the area where you are considering selling or buying – blended statistics will not be as accurate as a more detailed report that your real estate professional can provide to help you with your decision making.