Phoenix Market is Still a Buyer’s Market
STILL A BUYERS MARKET BUT THAT COULD CHANGE
Year over year, the Phoenix Area has seen a steady market as compared to last years climb. The number of home sales are on the rise as out of state buyers begin to once again flood the market.
What does this mean for buyers currently looking for affordable homes priced under $300,000? It hints that buyers will have slightly more leverage and luck in finding a home they’re looking for in 2019.
Last year at this time it was common place for Phoenix Area home-buyers to compete against 15 other offers because of lower inventory numbers. Today those same buyers would only be competing against 3 offers on average according to this year’s Cromford Report.
MEDIAN SALES PRICE
According to the Arizona Regional Multiple Listing Service Data Trends, the median home sale price in January 2019 was floating around $262,200. If this number sounds familiar, it should. The median price has been around $262,000 since October of last year. We’ve had a mediocre first quarter to say the least.
The highest median sales price occurred in June at $268,000 and began to drop in September of 2018. The good news for buyers is the while prices continued to dip in the last six months, interest rates also took a small dip. Rates were approaching the 5% for a 30-year fixed mortgage earlier this year, but are currently holding steady at 4.5%.
Within the last two years Seller have seen a soaring market in Phoenix and surrounding cities. Too few homes for first-time and investment home buyers triggered a Seven Percent price increase in 2018 and 7.6% in 2017.
According the the ARMLS, new home listing have jumped to an impressive 76 percent from last December and fell 15 percent from December to January.
Many of my first-time home buyers were competing against home flippers and investor at the $250K range. But the growing market trend shows homes priced under $250,00 are supporting the most price reductions going into the Spring.
Sellers are also realizing that buyers are getting choosy about homes that need alot of work. Realtors are urging caution to buyers waiting for prices to fall this year. Waiting could backfire as Phoenix Valley home prices are poised to climb higher throughout 2019 and possible flatten out by 2020.
No need to worry about prices falling like they did during the real estate crash of 2007-2011. The subprime loan issues are not going to be an issue this time.
ADDITIONAL MARKET CONDITION RESOURCES
- Outlook: Why Phoenix Home Prices Will Keep Rising Into 2020 via Brandon Cornett
- Most Housing Markets Shifting in Favor of Buyers, but Phoenix Bucks Trend via Katar.com
- Arizona housing market projected to be hot in 2019 via Ben Norman
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About the Author: The above article, Phoenix Market is Still a Buyer’s Market was written by Troy J. Elston, a licensed Realtor at West USA Realty, the premiere real estate brokerage based in Peoria Arizona. With over 16 years of experience in the real estate industry, Troy produces stunning results for home buyers and sellers. If you're thinking of BUYING or SELLING a home in the Phoenix Area, Troy would love to share his knowledge and expertise with you.
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