January Market Update
January 20, 2017 - By Morgan Renyer
The first month of 2017 has flown by! Wondering what the Phoenix Real Estate market has been up to this past month? Read below for what you need to know about what has been going on in the Phoenix residential market.
For the month of January, we will start by looking at how the market is looking for buyers and sellers in Arizona by city. According to the chart below, it is looking like the year is starting off pretty great from seller’s perspective! Over the last month, 13 of the 17 cities are showing an increase, several by quite large amounts, in their seller’s negotiating power. Supply is looking tighter pretty much all across the board making the market pristine for those looking to sell their homes. In the Northeast valley it is looking like Paradise Valley is close to slipping below 90, with the largest decline of 11%, which would represent a buyer’s market.
Active listings have declined in most cities compared to this time last month, creating favorable conditions sellers. Inventory seems to be slightly less than normal for this time of year. 2017 started off with 19,397 active listings for all areas, which is down 2.4% from January 1, 2016. This time last year, cities such as Youngtown, Avondale, Surprise, Glendale and El Mirage had extremely favorable conditions for sellers, but have seemed to cool off a little over the last 12 months. The Southeast Valley and parts of Pinal County are seeing the most favorable trends and continue to improve for sellers.
As seen in the graph below, average sales prices per square foot are increasing. The monthly average sales price per square foot is expected to continue to increase over the next few months, and is up from this time last year. Cities such as Scottsdale, Tempe, Phoenix, Chandler and Glendale all seeing over a 6% increase in the annual average price per square foot compared to last January. The median sales price in the Phoenix area seems to be staying in the same range as last month around $225,000, but is up 3.7% compared to this time last year.
In 2016, valley home buyers were dwelling on the less attractive interest rates they are receiving, which was reassuring for sellers. It was predicted that both supply and demand would be negatively effected by these rates. However, in the latest report from Freddie Mac, it shows that interest rates have moved lower in 2017. The movement is small, and is not expected to really change the market. Loan application approval rates also seem to have a favorable trendline continuing into 2017!
Overall, the Phoenix residential market is looking healthy following the start of the New Year!