Phoenix Real Estate Market Report – February 2019

Buyers the opportunity door is still wide open. Interest rates have fallen again. A few months ago the rates were supposed to continue up to cover the national debt. Now they are down some. They go up they go down. Sometimes it’s hard to figure out where those guys are going over at the FED. It seems that the national concern for the economy trumped (no pun intended Don) the need to pay off debt. So, for now, rates are low. As rates move they can make a big impact on our buying power. Example. Right now rates are about a half point higher than they were this time last year. Prices are up too. That being said, if prices were exactly the same the 1/2 point increase in rate means a difference of about $100 per month in payment. So, one might think that it’s better to rent for now. While there is flexibility in renting there is little control over rates. So be prepared for rents to continue to rise as the economy keeps humming along. Home prices and rents have both increased by over 8% in the past 12 months, so buyers gain a little more control over expenses by fixing in their interest rates compared to renters who are at the mercy of the landlord.

Sellers, the market still belongs to you. Albeit, the buyers are doing their darndest to pull back. The supply of available housing is 34 percent below normal compared to 12 months ago when it was a whopping 36 percent lower than normal. Buyer demand has softened non-the-less. The shift is likely due to the perception of an overvalued market. Twelve months ago demand was measured at 1% above normal levels; today demand is 13% below the watermark. Until this buyer sentiment impacts supply levels, the market will continue to favor sellers. We entered 2019 weaker than the previous years for sellers, but there is still no denying that our local real estate market continues to favor those who have property to sell.

Phoenix Housing Market Prognosis

If you are a buyer there is a lot to hang your hat on in this environment. Many of the renovations are breathing new life into older homes located in desirable parts of the valley. Interest rates are extremely low, so house payments will be kept manageable and within reach for many. Home prices are still quite a bit lower than other major cities across the Western US like San Diego, Denver, Portland, and Seattle. The good news for sellers is that now is a good time to sell. You still have the edge. So if you are thinking about selling this is a good time to do it. Thank you for checking out our Phoenix Real Estate Market Report – February 2018. Please read down the page and see all the charts, graphs, and commentary for your real estate decision making in our Phoenix metro housing market.

Every picture tells a story, right?

Look at this for a minute or two and you’ll get a pretty darned good idea of what our housing market is like here in the Phoenix metro.

👀 See What Homes in Your Neighborhood are Fetching These Days

The Days on Market graph portions of opur 🏡Phoenix Real Estate Market Report – February 2018 keeps us current on the always changing DOM aka: Days on Market indicator.

This graph shows us that the existing home sales number is low compared to recent previous years. Our 🏡Phoenix Real Estate Market Report – February 2018 will help you stay current with this and other important indicators.

The list to close price demonstrates the urgency (or lack thereof) that exists between buyers and sellers. The pressure to lower prices or hold fast keeps this important stat at the top of every listing agents mind. It is a big portion of the pulse that tells us where the market is headed.

This indicator allows us to forecast the coming trends for our sellers. This 🏡Phoenix Real Estate Market Report – February 2018 relies on this data to give you what you need to make a well-rounded decision about listing, pricing, and selling in general.

Highlights

• Properties were generally on the market for 46 days. At this same time in December 2017 the average was closer to 40 days. This is a significant change of well over 10%.
• Cash sales represented 22% of the market compared to 20% in 2017 of December.
• In December 2018 over 22% of all sellers gave buyers some sort of concession (closing costs, pre-paids, etc)  This is an increase of two percentage points over the previous year.
• Vacation home rental and investment purchases represented 13% of all closings as compared to 16% in 2017.

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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.