Phoenix Real Estate Market Report – December 2018

Comparing the current numbers to 12 months ago

• Active Listings (not including UCB)18,563 vs 18,422  ⬆ 0.8% – increasing by 3.4% from 17,953 last month
• Active Listings (including UCB): 21,736vs 22,019 ⬇️ 1.3% – and up 2.0% compare that with 21,311 last month
• Pending Listings: 4,562 vs 5,579 in 2017 – ⬇️ 18.2% – and ⬇️ 4.4% from 4,770 last month
• Under Contract Listings (including Pending, CCBS & UCB): 7,735 vs 9,176 in 2017 – ⬇️ 15.7% – and ⬇️ 4.8% from 8,128 last month
• Monthly Sales: 6,642 versus 7,202 in 2017 – ⬇️ 7.8% – and ⬇️ 9.7% from 7,355 last month
• Monthly Average Sales Price per Sq. Ft.: $166.46 vs $154.91 in 2017 – ⬆️ 7.5% – and ⬆️ 0.6% from $165.39 last month
• Monthly Median Sales Price: $260,000 vs $245,000 last year – ⬆️ 6.1% – and ⬇️ 1.1% from $263,000 last month

Changing Numbers – New Opportunities

The number of active listings with no contract increased 3.4% during the month of November. Active listings went up by 2.0%. Last year we had decreases of 1.2% and 1.7% comparatively. Similar to last month, we can now see an absolute increase in inventory, even though the  increases varie quite a bit from one price range to another.

These increases to the current supply are not caused by an increase in new listings. We say this because we noticed a 0.6% reduction in new listings in November vs 2017. Supply is higher due to a decline in demand. You can see the reduction to the demand in the pending listing number and under contract number.  These are down significantly from last year. In October, sales were somewhat lower than they were in 2017, but in November the change is more evident. There is nearly an 8% decline. This has not been witnessed since August 2014 and demonstrates the arrival of a decrease in demand that we have long been anticipating. No  adjustments need be applied to the sales numbers because  November 2017 and November 2018 both had only 19 working days.

Even though demand is down it is in excess of the significant low inventory and it is still a seller’s market in nearly all markets. However, the advantage for sellers is lower now than it was in the past 2 years and that means we are witnessing cuts in list prices and more of a willingness to contribute to buyer counteroffers in the midst of contract negotiations..

The extra inventory is slowing the median sales price from rising Interestingly, the average price per square foot is still on the rise.

Supply is continuing to increase. It is due in part to the winter season when many second homeowners are placing their property for sale

Over 94,000 sales as of December 5th, 2018.

Up from last month when it was $165.32.

Highlights

• 31% of all home purchases in the US were by first time home buyers compared to 32% in October 2017
• Cash Sales encompassed 23% of all sales in the US vs 20% in October 20117.
• 18% of sellers gave some concessions towards buyer expenses.
• Low-interest rates and low inventory are reportedly the highest factors in purchases according to Realtors®.

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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.