Here is the Market Report for the period ending August 2012. For a more thorough understanding of how the market is shifting and how this affects you, please give me a call and we can discuss it in more detail.
(click on any picture for a larger image)
Sellers:
As is typical in the month of August, we saw a slight increase in the number of sales last month, increasing by 6.2% over the prior month. The statistics show that we had 6,713 residential homes sell in the month of August in Maricopa County. It will be important to watch this trend over the next few months to see if we are following the same patterns of the prior two years that are analyzed in this report.
Buyers:
For buyers, this means that competition for homes still remains very high. We continue to see homes continuing to sell well above list price AND cash buyers being the ultimate winners in the bidding war, especially when homes are priced below $200,000. Buyers should continue to carefully work with me to understand the market AND how they can compete with the market demand and other buyers who may be in a financial position that is more appealing to the seller.
The market continues to shift, as we saw 56.7% of sales in the month of August classified as “non-distressed” sales. This is the highest number in the 36 month reporting period. Bank-owned sales dropped from 14.1% to 13%, and short sales increased from 29.6% to 30.3%. Sellers and buyers need to monitor this trend to see how the market continues to respond to the current inventory.
Sellers:
The trend of a lower average sales price continued in the month of August, dropping by 3.5%. However, this follows the trends for the month of August in the prior two years. The month of August showed a decrease in the average sales price from $204,057 to $196,857; this remains the 5th highest average price in the 36-month reporting period. Sellers should continue to watch this trend as they are pricing homes in today’s market. 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.
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Buyers:
For buyers, it is absolutely critical to be aware of this shift in the price of homes. This decrease does not necessarily mean that buyers have more buying power than they did in the prior month – it could simply mean that higher-priced homes are not moving as quickly over the summer months. There is no doubt that the low inventory has created competition for the current inventory, and that this high demand is impacting prices. More than ever, you need to work with me 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.
Sellers:
From March to June, we saw this ratio steadily increasing and then a drop in July. August saw this number rebound and become the 2nd highest number in the 36-month reporting period –to 97.98%. This is the ratio a seller receives when selling his/her home as compared to the price where the home was. The higher the number, the closer the final sales price is to the listing price. With the competitive nature of the market, this ratio still remains very high, and in homes priced under $150,000, we are seeing this ratio remain ABOVE 100% -- that means buyers in those price ranges, on average, are paying MORE for a house than the list price of the home. 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:
Buyers need to pay attention. As this average moves closer to 100%, on lower priced/highly desirable properties, buyers are discovering more and more in the lower price ranges that they may have to pay above list price AND 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. Call me to help you understand the competitiveness of the list price of the home you are wanting to purchase. You also need to be aware of the interest and sales activity in the area where you are wanting to buy and how the offer you are making competes with the market AND with trends relative to the price where homes are selling in the areas you have an interest.
The numbers above represent the entire Phoenix MLS.
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 let me know.
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 let me know.
Joseph D'Ambrosio
Executive Sales Associate
Keller Williams Integrity First Realty
Keller Williams Integrity First Realty
18940 N. Pima Road Ste 100
Scottsdale, AZ, 85255
Cell: 623-810-4824
Email: joseph.dambrosio@kw.com
Website: www.Arizona-HomeBuying.com
Website: www.Arizona-HomeBuying.kwrealty.com
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