Phoenix Metro Housing Market Update: October 2018 Statistics

    New Listings Up 18% in October between  $250K-$400K

    The 4th Quarter is Seasonally the Best Time to be a Buyer

     

    For Buyers:

    Seasonally the 4th Quarter is the best time to be a buyer and this year is no exception. Typi­ cally buyer contract activity is at its strongest from March through May and weakest between November and January. Buyers who were out-bid by competing offers last Spring will have a different experience now. October saw 18% more new listings hit the market between $250K­

    $400K compared to last October while buyer contracts are about the same within the same price range. There was only a 1% increase in new listings in the lower price range between

    $200K-$250K but a 12% drop in buyer contracts which caused overall supply to rise another 11%. The market is still a seller’s market, but more seller competition for fewer buyers trans­ lates into more price reductions and seller concessions until the Spring “Buyer Season” is up­ on us once again.

     

    For Sellers:

    The market may be softening between $200K-$400K (which accounts for over 56% of MLS sales), but that doesn’t mean sellers are getting a raw deal. Monthly average sale prices per square foot in this price range have appreciated 5% since October last year and nearly 19% in last 5 years. Under $200K, the appreciation rate is 9.5% in the past year and 44% in 5 years.

    $400K-$800K has appreciated 6% in the last year and 14% in 5 years and the annual average sale price per square foot* over $800K has appreciated 3% in the last year and 10.5% in 5 years. What’s happening underneath that contract price, however, is an increased cost to sell at “top dollar”. That cost can take the shape of longer days on market with multiple price re­ ductions, repairs, needed upgrades to the home prior to list and closing cost assistance.

     

    *Annual averages are used in the higher price ranges to mitigate the sharp price fluctuations that affect this market.

    Commentary written by Tina Tamboer; Senior Housing Analyst with The Cromford Report

    ©2018 Cromford Associates LLC and Tamboer Consulting LLC

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