Phoenix Real Estate Market Update – It’s a Buyer Frenzy!

The Phoenix real estate market is in a buyer frenzy early in the season due to low inventory in the most active price ranges.

Phoenix Real Estate Market Update - April 2017

The Phoenix real estate market is in a buyer frenzy early in the season due to low inventory in the most active price ranges.

For Buyers:
Buyers continue to find themselves in a frenzy of competition for homes as March recorded the highest number of non-distressed sales through the MLS since September 2005.  Supply has dropped a significant 12.7% overall compared to this time last year. That’s a whopping 22% drop  in the Southeast Valley and 27% in Pinal County! Despite the extreme lack of supply under $300K, 30% of closings in this price range are showing some form of seller-paid concession at close.  Compare this to 27% in March of last year and it indicates that even as demand and prices are on the rise, a larger percentage of sellers are contributing financially to closing costs, home warranties and repairs in order to get top dollar for their home.

For Sellers:
March 2017 recorded the highest Listing Success Rate for normal listings since July 2005 at 81.8%. More homes are coming off the market because they successfully sold and not because they cancelled or expired. In a balanced market, the Listing Success Rate ranges between 60-65% for this time of year.  To compare, the lowest Listing Success Rate was recorded in December 2008 at 21% and the highest was in May 2005 at 87%.

Normal listings between $100K and $200K currently have the highest success rate at 90%, followed closely by the $200K-$300K range at 87% and $300K-$500K at an impressive 79%. Seller concessions have risen despite buyer frenzy, as buyers have not forgotten 2005. Right now, it’s a good time to be a seller!

Wondering if it’s a good time to sell? Hoping you can still buy? Let’s chat!

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