The 4th Q Market Updates are ready! Give your Marketing Rep a call or contact me to have copies delivered to your office…
Here is the Market Update for October 1st, 2016 through January 1st, 2017. Please note that the Valley Wide graph represents all of the MLS. The table below that graph just represents recordings for new and re-sales for Maricopa County.
Active Listings and Sales
Total active listings (with no UCB) have gone down by 1,345 units over the last quarter. As of January 1st we sit at 20,158 active listings for all property types.
Sales are at 25,345 for Quarter 4 of 2016 down only 1,602 units compared to Quarter 3. We are currently have 3.4 months of supply, (based on Active listings with no UCB). Traditionally, 3-4 months of supply indicate a balanced market. December re-sales and new sales in Maricopa County were 8,685 compared to the 8,246 in 2015.
December 2016 was the largest December unit sales month since 2006!
Absorption rate
Absorption rate is the percent of sales that are sold each month of the inventory. A higher percent means that inventory is moving at a faster rate, and thus is a Seller’s market. The total absorption rate is 28% as of January 1st.
Certain areas of town have higher percentage of absorption rates, they are:
· Desert Ridge 49%
· South East Valley 41%
· Southwest Valley 41%
· Ahwatukee 36%
· Peoria and Glendale 36%
· Apache Junction 33%
· Buckeye 30%
Median Price:
The median price in Maricopa County for January 1st 2017 was $243,500. October 1st 2016 it was $239,400. In January of 2016 it was $205,000 for a 19% increase! In January of 2015 it was $195,000.
Median Prices have risen by 105% since August 2011 which was the bottom of the Market!
Real Estate is still a good investment!
Market Summary of 2016
2016 MLS Sales – Up 7.0% overall compared to 2015
· 72.9% of sales were under $300,000 (number of sales up 3.4%)
· 19.6% of sales were between $300,000 and $500,000 (number of sales up 20.2%)
· 6.1% of sales were between $500,000 and $1,000,000 (number of sales up 15.4%)
· 1.4% of sales were over $1,000,000 (number of sales up 8.1%)
2016 Was the highest unit sales since 2006!
Sellers over $500,000
More buyers purchased in the higher price ranges in 2016 than in 2015.The number of homes on the market increased, and combined with new homes over $250,000, created a more competitive and balanced market and put price increases in check.
Buyers under $300,000
These homes have appreciated 7.6% in the past year, which created a very competitive market. This made finding move-in ready homes and winning the bid more stressful and competitive than expected, especially for single-family homes under $200,000.
Looking forward in the short term, the market can expect more buyers emerging with improved credit scores that were affected by the foreclosure and short sale crisis.Recent announcements regarding FHA loan limit increases and lower mortgage insurance premium fees may make it easier to get a loan and 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, which will put 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.
Click on the link for a printable PDF
4thQ Market Update
We are looking forward to a productive 2017….As always, we appreciate your support!