December 2017 Market Update
December 15, 2017 - By Resource
How did the real estate market in Phoenix, Arizona end in 2017? Read below for everything you need to know.
Let’s review with the latest real estate market figures. The median sales price for the Arizona Regional MLS area (essentially, Maricopa County) was $245,000, which is up 8.4% over last years median sales price.
ARMLS projected that home closings would be comparable to the November 2016 total of 6,804. The final sales volume was 7,074. So there were 270 more sales this past November than last year’s November. Sales volume for the first 11 months of 2017 was 6.30% higher than 2016, with 86,817 sales in 2017 compared to 81,677 in 2016 so we are looking like we will have more closed deals in 2017 than in 2016, despite a lagging supply of inventory.
According to Frank Nothaft, Chief Economist of Core Logic, “A central theme for the 2018 housing market will be the continuing erosion of housing affordability.”
We concur, the threat of low inventory pushing prices higher and rising interest rates will mean that less buyers will be enticed to own versus renting. We see many of our clients paralyzed from sticker shock. They are still buying, however the speed at which they are jumping in head first is declining, often citing “needing to save more.” Unfortunately, the way the market is going, it will be hard to “outsave” the affordability issue in the near future.
A correction will be coming no doubt, but without a crystal ball, who can say when it will occur? For now however, all signs point to a healthy and upward Q1 in 2018!