Phoenix and East Valley AZ Real Estate Market Report January 2019
January usually starts the Phoenix and East Valley housing market off on a positive note heading into the new year. This January does show some positive signs regarding the Phoenix Metro and East Valley housing market, but it also shows that some things might be slowing down.
Median Sold Price
First off, the January median sales price of $262,368 is a 0.5% increase from the December price of $261,000, but is a whopping 7.1% increase from the median sales price of $245,000 from January of 2018. Most of the median sales price growth in 2018 occurred during the first five months of the year. Sold prices have remained essentially the same since last August, when the median sold price was $262,500. This means that home values may be leveling off, but they are projected to continue increasing through 2019, just at a slower pace than in the previous four years.
Days on Market
The number of days on market (DOM) for January has reached 70. The DOM has been consistently increasing since a low of 59 in October, but is lower than it was in January of 2018 when it was at 74. This is typically the seasonal flow for days on market, as it tends to slow down through the fall and winter months, then starts to decrease in February as home sales start to pick up during a normal market flow. Overall, this is still a low number for DOM, which means homes in Metro Phoenix and the East Valley are selling slightly faster than they would be in a normal market. February will be a good indication of which direction the market may be heading if the number of DOM continues to increase.
The average sold price to original list price is still high at 96.2%, but has been steadily decreasing since last July when it was at 97.5%. The ratio sitting at 96.2% is a slight decrease from December when it was 96.5%, and also barely lower than it was last January, when it was 96.3%. This steady decline is an indication that the list price of homes may be getting too high for buyers, and it might be the beginning of a market shift. However, there is still a large demand for homes, and the Phoenix Metro and East Valley housing market is still a sellers market, although it is heading towards a more normal market.
Number of New Listings
The number of new listings increased to 10,277, up 252 (or 2.5%) from January of last year, and almost double the listings from last month when new listings totaled just 5,771. This is a significant increase, but it is typical to see new listings in January jump to begin a new year. This is the highest number of new listings in one month since we saw 10,937 new listings in March of 2018.
Number of Active Listings
The total number of active listings also increased from 16,623 in December to 17,725, which is an increase of 1,102 active listings, and the highest number of active listings since April of 2017 when they were at 17,737. This is the fifth increase in the
Number of Homes Sold
January marks the seventh out of the last eight months that the Phoenix Metro and East Valley housing market has see a decrease in the number of homes sold. The total homes sold for January was 5,342, which was not only a decrease of 1,015 (-16.0%) from December, but also a decrease of 682 (-11.3%) from January of 2018. The 5,342 homes sold is lower than the 5-year average for January, and the second month in a row that the number of homes sold has been lower than the 5-year average. This marks a slow start to the 2019 Phoenix Metro and East Valley housing market, and continues the slowing trend that took place over the last half of 2018.
Number of New Contracts
The number of new contracts increased 47.0%, to 8,792 in January, from a 12 month low of 5,981 in December. This marks the first increase in new contracts since last August, but it is typical for the Phoenix Metro and East Valley housing market to see a significant increase in new contracts from December to January. However, the number of new contract this January was 8.3% lower than the 9,593 new contracts that we saw in January of 2018. This could also be a sign that home sales in 2019 might be slowing.
With the number of Phoenix Metro and East Valley listings increasing, and the number of homes being sold each month decreasing, this may be a sign that the sellers market we have seen over the last four years is slowly starting to shift. However, home values are still projected to continue to increase, just at a slower pace in 2019, and interest rates have actually gone down so far this year.
Having a good real estate agent who understands the housing market is a must. Homes in the Phoenix Metro and East Valley area are still selling in just over a month from when they first hit the market. You need an agent that can provide you an accurate list of homes for sale as soon as they are listed, as well as an agent that can help negotiate a great deal, and ensure that your transaction closes.
I have additional market reports and statistics included on my website, and you can find this information by clicking the following link, Arizona Multiple Listing Service Market Stats and Reports.
Phoenix and East Valley Real Estate Report Summary
- The average sold price in January for Metro Phoenix and East Valley homes is $328,298.
- The average sales price has increased by 4.39% from January of 2018.
- The median sold price in January for Metro Phoenix and East Valley homes is $262,368.
- The median sales price has increased by 7.1% from January of the previous year.
- The number of new purchase contracts in January increased to 8,792.
- New purchase contracts have decreased 8.3% from January of 2018 (9,593).
- The number of active listings in January have increased to 17,725.
- The average Days on Market has increased to 70.
Visit my website to search homes for sale in Phoenix, and the East Valley cities of Chandler,Tempe, Gilbert, Ahwatukee, and Mesa, or to be notified when homes in Phoenix and the East Valley come on the market and are listed for sale.
If you have any questions, or would like additional information about home buying, home selling, or investing in real estate in Phoenix, or the East Valley of Arizona, just call/text me at 602-295-6807, or email me and I can help!
I help people just like you Buy, Sell, and Invest in East Valley Arizona Real Estate!"
Troy Erickson Realtor
Troy Erickson has been blogging about Arizona real estate since 2006. He is a residential real estate agent who specializes in helping home buyers, sellers, and investors in Chandler and the East Valley. He has been recognized for his local market expertise, and frequently volunteers within his community.