Phoenix and East Valley AZ Real Estate Market Report September 2018

10/12/2018

Phoenix and East Valley AZ Real Estate Market Report September 2018

Real estate market data for Phoenix, AZ provided by Troy Erickson Realtor of Good Company Real Estate

Phoenix Metro Home Prices and Statistics

As you can see on the Local Market Insight Report for the Arizona Regional Multiple Listing Service (see report below), prices of Phoenix Metro homes remained fairly steady in September, as the median sales price dropped slightly to $260,000, from $262,500 last month. However, this is a 7.9% increase from September of last year. The number of days on market remains low, at 61, which means homes in Metro Phoenix are still selling at a rapid pace. The average sold price to original list price remains high at 97.1%, which also shows that there is still a demand for homes, and homes are holding their prices. All of these factors show that even though we are heading into the fall, the Phoenix Valley is still in a sellers market.

East Valley Housing Reports from Troy Erickson Realtor

The number of new listings dropped off significantly in September, not only from last month, but also from last year as a whole, as the Phoenix Valley continue to see a low inventory of homes for sale. The total number of active listings for September 2018 was 15,280, which is 2,879 fewer than the 5-year average for this time of year.

Phoenix and East Valley Real Estate Reports | Troy Erickson Realtor

There was also a significant drop in the number of homes sold, with a 15% drop-off from August, and 420 fewer sales than in September of 2017. However, we are still on track to sell more homes this year than last, which overall is a good sign, especially since inventory has been so low throughout the year.

The low inventory of homes for sale in Phoenix still has many sellers receiving multiple offers on their homes. However, with fewer competition from buyers this time of year, you may have a better chance of getting the home you desire. Having

a good real estate agent who understands the market is a must. Homes in the Phoenix Metro area are still selling within a few weeks of hitting the market so you will want an agent that can provide you a list of homes for sale as soon as they are available for sale.

The low inventory of homes for sale in Phoenix still has many sellers receiving multiple offers on their homes. However, with fewer competition from buyers this time of year, you may have a better chance of getting the home you desire. Having a good real estate agent who understands the market is a must. Homes in the Phoenix Metro area are still selling within a few weeks of hitting the market so you will want an agent that can provide you a list of homes for sale as soon as they are available for sale.

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 Market Reports | Troy Erickson Realtor

Phoenix Real Estate Report Summary

The average sales price in September for single family homes in Metro Phoenix is $316,866.
The average sales price increased by 7.69% from the previous year.
The median sales price in September for single family homes in Metro Phoenix is $260,000.
The sales price dropped by -1.00% from the previous month.
The number of active listings is at 15,280. The average Days on Market is 61.

Find Homes for Sale in Phoenix AZ

Visit my website to search for homes in Phoenix or to be notified when homes in Phoenix and the surrounding area come on the market. You can also click on the following link to find out what your home is worth.

If you have any questions about home buying, home selling, or investing in real estate in Chandler, or the East Valley of Arizona, just call/text me at 602-295-6807, or email me below, and I can help!

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Troy Erickson Realtor
Call/Text: (602)295-6807
TroyEricksonRealtor@gmail.com
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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.

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2 Factors To Watch In Today’s Real Estate Market Whether Buying Or Selling

10/3/2018

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2 Factors To Watch In Today’s Phoenix and East Valley Real Estate Market Whether Buying Or Selling

2 Things to watch in today's Phoenix and East Valley Real Estate Market whether you are buying or selling | Troy Erickson Realtor

When it comes to buying or selling a home there are many factors you should consider. Where you want to live, why you want to buy or sell, and who will help you along your journey are just some of those factors. When it comes to today’s real estate market, though, the top two factors to consider are what’s happening with interest rates & inventory.

Interest Rates

Mortgage interest rates have been on the rise and are now over three-quarters of a percentage point higher than they were at the beginning of the year. According to Freddie Mac’s latest Primary Mortgage Market Survey, rates climbed to 4.72% for a 30-year fixed rate mortgage last week.

The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power.

Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford to buy will decrease if you plan to stay within a certain monthly housing budget.

The chart below shows the impact that rising interest rates would have if you planned to purchase a $400,000 home while keeping your principal and interest payments between $2,020-$2,050 a month.

How Interest Rates Can Impact Your Monthly Housing Payments | Troy Erickson Realtor

With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mortgage rates will be over 5% by this time next year.

Inventory

A ‘normal’ real estate market requires there to be a 6-month supply of homes for sale in order for prices to increase only with inflation. According to the National Association of Realtors (NAR), listing inventory is currently at a 4.3-month supply (still well below the 6-months needed), which has put upward pressure on home prices. Home prices have increased year-over-year for the last 78 straight months.

The inventory of homes for sale in the real estate market had been on a steady decline and experienced year-over-year drops for 36 straight months (from July 2015 to May 2018), but we are starting to see a shift in inventory over the last three months.

The chart below shows the change in housing supply over the last 12 months compared to the previous 12 months. As you can see, in June, July, and August, inventory levels have started to increase as compared to the same time last year.

How Housing Inventory impacts demand and Home Prices | Troy Erickson Realtor

This is a trend to watch as we move further into the fall and winter months. If we continue to see an increase in homes for sale, we could start moving further away from a seller’s market and closer to a normal market.

Bottom Line

If you are planning to enter the housing market, either as a buyer or a seller, make sure that you have an experienced local agent who can help you navigate the changes in mortgage interest rates and inventory.

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Troy Erickson Realtor
Call/Text: 602-295-6807
TroyEricksonRealtor@gmail.com
Linkedin Profile
Facebook Page

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