Phoenix Real Estate Market Report – August 2019

The August real estate activity in Phoenix and surrounding cities tell a story. It is one of strength and power. One of opportunity and profits.

Hey, howdy, everybody it’s Phoenix real estate agent John Cunningham with eXp realty and every month like clockwork, I’m right here on Youtube and I make a Phoenix real estate market report. I do all the research for you. I put it into video format so it’s easy to digest, quick to understand, and this month’s market report is going to be particularly interesting to all of you who are thinking about buying or selling because we’ve had big-time change in the marketplace.

Unbelievable Inventory Numbers

So the first number I want to get to is the months’ supply. Now let’s set the benchmark. Typically there’s about four to six months worth of inventory on the market available to sell. In other words, if we stop taking listings today, it’s going to take four to six months to sell it all in a normal market. But is this market normal? Heck No. It’s crazy. Right now we have four 1.4 months, 1.4 months worth of inventory.

Now that’s down from two months of inventory. Just last month, I didn’t think it was possible to get any lower than that. So note to seller, this is a really good time to sell a house. If you’re thinking about someone a house, yeah, this could be a good time to do it. Next, let’s look at days on market. So normally it takes about 90 to 120 days to sell a home.

DOM – Days On Market (time needed to sell a home)

Right now it’s at 55 days down from 61 days, just last month. So this includes all homes. So anything that is in a rural area that might normally take a little longer to sell, anything that’s in the luxury market, that might take a little longer to sell. But if your home is average or anywhere near it, your house could sell in weeks, if not days. So you gotta be prepared to go if you’re going to go on to market.

Next we’re going to look at volume of annual sales. This is an interesting chart. You see these different colors. We’ve got the rust-colored area, which represents the bank-owned properties. The aqua colored area represents short sales and the dark blue representing regular sales. So in the bank owned sales for the last 12 months, we’ve had 583 sales. See that little part of the chart over here where you can’t even see the rust color yet. Those are the bank-owned sales, short sales, 841 in the last 12 months. Again, really has no bearing hardly at all on the market place right now and coming in at the very top of list 91,846 regular sales. So the market in terms of distress property is extremely healthy. The distressed property market is virtually nonexistent here.

Price per Sq Ft

we’re going to look at the monthly annual sales price per square foot, which is currently sitting at just under $170 per square foot.

List Price vs Sales price

Here we’re going to look at the cost per square foot of homes sold versus the price they were listed at per square foot. You can see there’s a little between these numbers, so that means sellers are willing to make a concession, lower the price a little bit in order to sell it. If it’s obvious to everyone that they’re priced a little bit high and sellers are trying to get all that they can, prices are going up, so pro sellers are trying to push the market and sometimes they’re getting a little bit of resistance and sellers are having to lower it if their price is not realistic.

Some US Real Estate Sales Stats

Here we’re going to look at some of the national sales stats. One of the things I want to point out are that first time home buyers represent 32% of all sales. That is really a fantastic number. Cash sales reflect 19% of all home sales and 19% of all sellers make some sort of contribution towards the buyer’s closing costs. It could be the closing cost themselves. It could be in the form of a home warranty and it could be in the form of some sort of remodeling or repairs and realtors unsurprisingly are reporting that the interest rates and the amount of inventory is impacting all of this.

Our Phoenix Real Estate Market Report – August 2019 is impacted by wht is happening in the country. Taking the time to focus on our US real estate market helps us make better forecasts.

Monthly Median (condo numbers too)

Next, we’re going to look at monthly median sales price. Right now it’s just under $275,000 and the median sales price for condos is right at $202,000 the Phoenix condo market inventory is also at 1.4 months worth of supply and the average days is taking to sell a condo is at 56 days, so that’s a wrap.

Conclusion – Phoenix Real Estate Market Report – August 2019

That is our Phoenix real estate market report for August. If you’d like to talk about your real estate goals, I’d love to help you out. If you’re thinking about buying a home or selling a home, in either case you might want to just bounce some of your ideas off somebody. I’d be happy to do that for you. All my contact information is below. Again, I’m here every month on Youtube. Do us both a favor and subscribe to the channel. Hit the little notification bell and that way I’ll send you a reminder next month when my next report is out. Thanks again for watching this video. See Ya.

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Highlights

• Homebuyers making their first-ever property purchase accounted for 32% of all sales.
• Cash sales reflected 19% of all home sales.
• Home Sales incentives were offered by 19% of all sellers. The contributions ranged from home warranties to closing costs, to remodeling/repairs.
• Realtors® report that low housing inventory and interest rates account for much of the activity.

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See Additional Reports on the Phoenix Real Estate Market

Here’s the most recent home listings just added to the database in the average price range for Phoenix.

All homes here are priced at $300,000 or less.

Thank you cor checking out our Phoenix Real Estate Market Report – August 2019. We will be back next month like every month. Until then feel free to reach out with any questions about the greater Phoenix real estate market.