July Market Update
July 5, 2017 - By Rachel Deckman
As we reach the halfway mark for the year of 2017, let’s review with a market update.
Supply is significantly lower than last year at this time. The number of active listings are down 11.6% from last year and down 2.1% from last month. We are also seeing lower numbers of pending listings and listings under contract, compared with the same time last year. This drop in supply over the last month was heavily focused in areas that cater to the 55+ home buyer and higher priced areas.
With the amount of supply decreasing at this time, it’s obvious that the Monthly Median Sales Price should be increasing.
Currently, Monthly Median Sales Price is $245,000. This number is up 6.5% from last year and up 2.1% from last month.
Despite the number of listings and supply decreasing, the number of sales is up 5.7% from last year. How could this be?
One reason could be that the number of active listings include only include MLS listings (i.e. listings being sold by Real Estate Agents). This number does not include sellers looking to sell their property on their own (For Sale By Owner or FSBO). There has been a 13% increase in FSBO sellers at this time as compared to last year. Thinking of selling on your own like others have in the market? We encourage you not to. Based on the annual average sales price per square foot, these FSBO properties have sold for 15% less than properties on the MLS and being sold by agents. Existing homeowners are seeing increased solicitations to sell their home outside of the local MLS. If you are looking to sell without an agent, remember that you probably won’t receive all that your home may be worth. And we’d also like to remind you that if you are curious to what your home can sell for, please reach out to us!
New Home Sales in 2017
New home sales are up 26% compared to last year. Builders are continuing to add the much needed supply to the marketplace. The supply they have been adding is focused heavily on inventory between $275K and $500K. There is new construction everywhere you turn in Phoenix now and there’s really no surprise. Many people want to buy new and the numbers reflect just that.
Let’s recap for June/July 207:
As we start the second half of the year, we look forward to what Phoenix’s residential real estate market will bring!