Friday, November 22, 2013

November 2013 Market Report

November 2013 Market Report...
Report overview
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 11/3/2013.

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.

(click any graph for larger image)

 Closed Sales Report Analysis:

The month of October showed another decrease in the number of closed sales when compared to the prior month. The statistics show that we had 5,411 residential homes sell in October in Maricopa County compared to 5,608 in the month of September, a 3.5% decrease. This is the fifth month in a row that we have seen this number decrease. Sellers should pay attention to this, as it means fewer sellers are having success getting their home sold.

For buyers, this means that fewer homes successfully closed last month than in prior months. As prices and interest rates continue to rise, it is very important for buyers to monitor the impact of rising interest rates.  A close eye should also be kept on changes that will be coming in 2014 related to loan qualification requirements.

Average Sales Price Analysis:
Last month saw the average sales price increase 2.9%, from $244,208 to $251,328. This is the highest average sales price in the 36-month reporting period AND the highest average sale price we have seen since July of 2010.  Although this is great news for sellers, sellers also need to pay careful attention to the current market, as we are seeing inventory increase and homes remain on the market longer. This could eventually mean that prices will need to adjust for buyers to maintain interest.  Sellers need to remain diligent about pricing homes according to the current market and to understand how this increase impacts individual homes.  Sellers are encouraged to spend time with their real estate professional to determine what is happening in their local market.

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, negotiating on price and looking for concessions from a seller.  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 individual market in which they have an interest.  This will give them the best chance of being competitive in the search for a home.

Average List to Sales Price Ratio Analysis

This is the ratio calculated when comparing the price for which a home sells against the price for which it was listed.  The higher the number, the closer the final sales price is to the listing price.  Last month saw this number decrease nearly a full percent, from 98.0% to 97.13%.   This means sellers who have priced their homes according to the market are, on average, receiving just over 97% of the asking price.  Continue to watch this trend, as it will continue to impact how homes should be priced in the current market in order to appeal to the buyers.

Buyers need to pay attention. As this average remains very close to 100% on lower priced/highly desirable properties, buyers are finding that they may have to pay above list price as they are competing with investors who are bringing cash to the transaction.
Since a home must appraise in order to obtain a loan, underwriters are still looking very closely at prices and making sure that homes are selling at or below market value. This could mean that investors have an advantage if they are willing to pay higher than the list price.
Make sure your real estate professional helps you understand the competitiveness of the list price of the home you want to purchase.  Be sure to review the sales activity in the area where you want to buy and how the offer you are making competes within that market and its trends.

Distressed Sales Analysis

A bank owned/foreclosure home is one that the seller no longer owns – it has been taken over by the lender(s) who had a note on the home. Short sales are homes where the seller is negotiating with the bank to “forgive” a portion of the debt in order to avoid foreclosure.

The market saw a continued increase in the percentage of what we call traditional or non-distressed sales.  Bank-owned sales decreased slightly from 7.3% to 6.2% of closed sales, and short sales decreased from 8.9% to 8.4%.  The result was an increase in the number of traditional sales from 83.8% to 85.4%.  Sellers and buyers need to monitor this trend to see how the market continues to respond to the current inventory.


Would you like to know what is happening in your neighborhood?
Would you like to know the value of your home?
Do you need help deciding whether to sell or not or would you like to know if now is the right time to buy?

I would be very happy to get you that information.
Just hit Reply and let me know.

"Opening The Door To Opportunity and Your Future Home..."

Thank you
Joseph D'Ambrosio
Joseph D'Ambrosio Cell: 623-204-2138
Real Estate Consultant / REALTOR 
West USA Realty

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