Everyday, I am asked “How is the Phoenix Real Estate Market?” Well, here is the answer…
In October 2013, we went from a seller’s market to a balanced market. This was the first time in more than a decade that Phoenix has seen a normal real estate market. We did not quite know what to do with such a market. It was a novelty for us. Well, the short period of the balanced market is gone. We are now in a buyer’s market.
As inventory continues to climb and demand lower than normal, we have entered a buyer’s market in most parts of Phoenix. New listings are up 9% from February, 2013. November through January are traditionally slow months for real estate in Phoenix. As expected, February’s sales were higher than January. However, sales were down from February 2013.
The median sales price for February 2014 was $180,000 compared with $160,000 in February 2013. This sounds positive, but the problem is in June 2013 the median sales price was $182,500.
Whereas demand is low in most markets across Phoenix, demand is high in the luxury market. This is due to the wide availability of jumbo loans. The stock market has also had a positive impact on demand for luxury real estate in Phoenix. This being said, sellers in the luxury market are seeing a lot of competition as there is a lot of inventory.
All of this is good news for buyers in the Phoenix Real Estate Market. If you are a buyer, you have plenty of homes to choose from. You can ask for concessions. As a seller, you need to price your home competitively if you truly want to sell your home. You will need your home to outshine the other homes for sale.
One side note and word of caution: This may vary from market to market, neighborhood to neighborhood. When you decide to prepare yourself to buy or sell a home, you need to know what the particular market is doing in your area. Take a look at how much inventory is out there. Take a look at average list price versus average sales price.
All data used for this was taken from Michael Orr’s Cromford Report and ARMLS.