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
8/4/2013.
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:
Sellers:
The month of July showed a decrease of 5.2% in the number of closed sales. The statistics show that we had 6,904 residential homes sell in July in Maricopa County compared to 7,286 in the month of June. This is due in part to the decreased inventory, and it does follow the trend of the prior two years during the month of July.
Buyers:
For buyers, this mean that the shortage of inventory continues. Fewer buyers were able to find and successfully close on a home last month when compared to last month. As prices and interest rates continue to rise, buyers need to make sure they don’t get priced out of buying their home.
Average Sales Price Analysis
Sellers:
For the second month in a row, we saw the average sales price of a home in Maricopa County stay relatively the same as the prior month. The average price increased slightly from $247,438 to $247,490; this is the second highest average in the 36-month reporting period. 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.
Buyers:
This stat is an indicator that buyers continue to pay more for homes than 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.
List to Sales Price Ratio Analysis
Sellers:
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. Last month saw this number decrease slightly from 97.9% to 97.69%. This is the third highest the number has been since October of last year, and it means sellers ARE, on average, getting almost 100% of the price where a home is listed. 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 remains very close to 100%, on lower priced/highly desirable properties, buyers are still finding homes in the lower price ranges where 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.
Make sure your real estate professional helps you understand the competitiveness of the list price of the home you want to purchase. Pay attention as well, to sales activity in the area where you want 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 that area.
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 stabilized last month, as we saw no change in the ratio of distressed vs. non-distressed sales. Bank-owned sales remained at 8% of closed sales, and short sales remained at 13%. Sellers and buyers need to monitor this trend to see how the market continues to respond to the current inventory.
STOP!
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 Reply and let me know.
