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February 2014 Market Report

Report overview

This report includes MLS data for the past 36 months in Maricopa County only as provided by the FlexMLS system.  Please note that searches fluctuate daily when running these reports; these figures were obtained on 2/3/2014.

A reminder that you need to meet with a real estate professional to see how statistics impact the area where you are considering selling or buying – blended statistics will not be as accurate as a more detailed report that your real estate professional can provide to help you with your decision making.
 

(click any graph for larger view)
 

Total # of Closed Sales (36 Month Overview)

 

Closed Sales Report Analysis:

Sellers:

As is typical in January of the past 3 years, last month saw a significant decrease in the number of closed sales – an 18% decrease over the prior month.  This can be due in large part to fewer buyers going under contract over the holidays.  The statistics show that we had 4,277 residential homes sell in January in Maricopa County compared to 5,225 in the month of December.  Sellers should pay close attention to this figure as January’s closings were the lowest in the 36-month reporting period.

Buyers:

For buyers, it is good to know that buyers are still buying and taking advantage of the great interest rates and lending options available to them.  Although we traditionally see fewer homes close in January of each year, savvy buyers continue to remain very active.
 

Average Sales Price (36 month overview)

 

Average Sales Price Analysis:
 

Sellers:

Last month saw the average sales price decrease 2.5% from $257,626 to $251,087.  Although this is the third highest average sales price in the 36-month period, sellers should be aware of a shift in the market.  Homes are remaining on the market for a longer period of time, average prices are dropping, and inventory is increasing.  Pricing is more important than ever to ensure that a home remains attractive compared to the competing listings.  Homes that are priced right from the onset of the listing historically sell faster and closer to the list price compared to listings that experience price-reductions.

Buyers:

This statistic is an indicator that buyers still continue to pay more for homes than they have in the past 36 months.  Educated and savvy buyers understand that a competitive market gives them fewer options for home choices – even when inventory increases.  Although this may vary from area to area and from price range to price range, buyers need to make sure they are fully informed regarding the specific market in which they have an interest.  This will give them the best chance of being competitive when making an offer.
 

Total # Pending Sales (36 Month Overview)

 

Pending Sales Report Analysis
 

Sellers:

The month of January saw a significant increase in the number of homes that moved to pending status – a total of 4,542 homes.  This type of increase is very typical for this time of year.  It is very important for sellers to continue to monitor this statistic, as it is a strong indicator of the number of buyers and sellers that were able to come to an agreement on the terms of a contract on a home.

Buyers:

Educated and savvy buyers understand that a competitive market gives them fewer options for home choices, negotiating on price, and requesting seller concessions.  Although this may vary from area to area and from price range to price range, buyers need to make sure they are fully informed regarding the specific market in which they have an interest.  This will give them the best chance of being competitive in the search for a home.  The new lending practices make it more important than ever for buyers to be prequalified for a mortgage through a reputable lender.
 

New Listings (36 Month Overview)

Months of Inventory Analysis
 

Sellers:

The month of January followed the normal trend for this month and saw a dramatic 44% increase in the number of new listings entering the market, a total of only 9,648 homes.  This is the second highest number during this 36-month period.  Sellers definitely need to monitor this new inventory to see how it might impact the sale of their home.  With all of the other factors showing a shift to a more balanced market, sellers need to be more aggressive than ever to price their homes to attract buyers.  If your home is not selling in this market, it is more than likely a pricing issue.  Buyers are very aware of this shift, and are making offers on homes that are priced well, and offer the best amenities and terms.

Buyers:

Buyers pay attention! January brought you 9,648 more choices. Although buyers do have more options, the other statistics in this report reveal that well priced homes are still selling quickly.  More than ever, it is essential that you take advantage of this new inventory.  Spend time with and listen to your real estate professional to develop your strategy for succeeding in a market that is constantly changing.
 

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January Market Update 2014

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How March Madness Works   March Madness is a phenomenon that grips the national sports psyche from the second week of March through the first week of April. Learn more, click HERE. Bacon Wrapped Smokies    "Time consuming but it is well worth it! The brown sugar and bacon grease combine beautifully and give such a great taste." For the recipe, click HERE. Keeping Your Home Safe While You’re Away   Total home security means that you won't have to worry while you're away. A few simple actions and some high-tech additions will give you peace of mind whether you're at your office or on a Caribbean cruise. Learn more, click HERE.