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March Market Update
March 30, 2017 - By Resource
Curious as to what the real estate market has been up to this past month? Read below for everything you need to know about what has been happening in the Phoenix residential market!
Over the past month, 11 out of 17 cities showed an increase in their seller’s negotiating power, with only 6 deteriorating. Maricopa, with a 14% increase, and Surprise, at a 13% increase, showed the highest overall positive trend with Tempe not too far behind at 9%. Scottsdale, Goodyear, and Gilbert, which are generally the more expensive locations, are the main cities with a negative trend and have moved from a seller’s market to a balanced market. Overall, this is a positive move over the course of the past month which is a good standpoint from a seller’s perspective!
Although the average sales price per square foot has shown little change since January, we are currently seeing a rise in the average, where it has jumped over $151/SF for the first time since March of 2008. During this moment of lack of direction, seller’s are very much in charge all across the board. This is inferring that it is very possible to see the usual second quarter rise in average sales prices to make its move within the next couple of weeks.
According to the ARMLS Residential Resale, houses have seen an increase in their listing success rate from January to March. The current reading is 80.8% which is the highest success rate the Phoenix Residential Market has seen since June of 2013. This graph includes all areas and types and since that also includes expensive homes, this is a very high number. To achieve a listing success rate of over 80% requires a healthy market, in which investors who were searching for property saw them to disappear quickly.
Supply and demand remain out of balance and the overall trend remains upwards. However, the pending listing count grew much less between February 15 and March 15 than it did in the same period last year. This means that demand might be starting to reach a steady market.