May 2018
For Buyers:
For Sellers:
Commentary written by Tina Tamboer, Senior Real Estate Analyst with The Cromford Report ©2017 Cromford Associates LLC and Tamboer Consulting LLC
April 2018
For Buyers:
Greater Phoenix ended the 1st Quarter 13% lower in supply, which was not helped by a 2% decline in new listings entering the market. All price ranges are below last year’s level of supply with the exception of the $1M+ market, which is up 1.5%. On the opposite end of the spectrum, supply under $200K is down 36% from last year and all prices in between are down 10%. Buyer competition is typically at its strongest at this time of year and is expected to begin tapering off seasonally in May or June.
For Sellers:
Despite the highly competitive, fast appreciating environment in the $100K-$200K market, more sellers decided not to list their home on the MLS and many chose to sell to an investor instead. This is ironic considering MLS sales in that price range sell for 12% more per square foot on average compared to normal non-MLS sales, which could equate to a $12,000-$22,000 gap. Additionally, the annual average sales price per square foot rose faster for MLS sales in this range at 7.9% while non-MLS sales rose only 6.0% over the last year.
Commentary written by Tina Tamboer, Senior Real Estate Analyst with The Cromford Report ©2017 Cromford Associates LLC and Tamboer Consulting LLC
March 2018
February 2018
For Buyers:
Buyers continue to have a tough time finding inventory on the low end of the market. New listings overall are down 9% year-to-date thus far, which doesn’t help matters. Compared to February last year inventory under $150K is down 62% and down another 43% between $150K and $200K. Mid-priced inventory between $200K and $500K is down 11% and down 7% between $500K and $1M. Only inventory over $1M is up nearly 2% over last year. Seller concessions are also down so far this year. After hovering around 27% for the past 2.5 years, closings with seller concessions dropped down to 23% as the seller market has strengthened in the new year. Homes sold between $150K and $200K had the highest percentage of seller concessions at 34%.
For Sellers:
Buyer season is ramping up as expected during this time of year. So far listings under contract are nearly dead even with 2017 levels at this time and are expected to continue rising through May. 2018 year-to-date sales are also very close to 2017 counts, only up 2% in the first 6 weeks. Not surprisingly, MLS sales under $200K are down 21% due to low inventory. However, sales between $200K and $300K are up 14%, $300K and $500K are up 21%, $500K and $1M are up 20% and sales over $1M are up 36%.
Commentary written by Tina Tamboer, Senior Real Estate Analyst with The Cromford Report ©2017 Cromford Associates LLC and Tamboer Consulting LLC
January 2018
For Buyers:
2018 is not going to be any less competitive for buyers in general. The market is starting out with 14% fewer listings compared to 2017 however, there are 35% fewer listings under $200K, a price range that commands 34% market share of all MLS resales in Greater Phoenix. 51% of MLS sales were between $200K-$400K in 2017, and supply in this range is down just 7%. 14% of sales were between $400-$1M and supply is down nearly 9%. Only the market over $1M is starting 2018 with 4% more for sale, 2017 sales over $1M were less than 2% of the market.
For Sellers:
Over 51% of newly constructed condominiums, townhomes and single-family residences sold in 2017 were between $275K-$500K as of November and approved single family permits are up nearly 12% going into 2018. Added inventory from new construction continues to keep mid-range property appreciation at sustainable levels at the current level of demand. The last wave of boomerang buyers is expected to rejoin the masses in homeownership this year after waiting 7 long years to qualify for conventional financing after foreclosure. These buyers span all price ranges and their return combined with positive inbound relocation and employment keep Greater Phoenix a positive environment for sellers.
Commentary written by Tina Tamboer, Senior Real Estate Analyst with The Cromford Report ©2017 Cromford Associates LLC and Tamboer Consulting LLC
