Market Report for March 2014

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 3/2/2014.

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)

Closed Sales Report Analysis:

Sellers:
As is typical in February over the past 3 years, last month saw a significant increase in the number of closed sales – a 13.6% increase over the month of January.  This is the normal “rebound” we see in activity after the holidays.  The statistics show that we had 4,858 residential homes sell in February in Maricopa County compared to 4,277 in the month of January.  Although this is good news, sellers need to continue to be diligent in pricing and staging their homes, as we are no longer in a seller’s market.  The traditional/balance market means a level playing field for both buyers AND sellers.

Buyers:
For buyers, this is great news.  It means that buyers are taking advantage of this amazing market due to low interest rates, higher inventory levels, and more traditional sales from which to choose.  The traditional market that we are in now means that there is balance from both the buyer and seller side.
 

Average Sales Price Analysis:

Sellers:
Last month saw the average sales price increase 2.5% from $251,087 to $252,201.  This is the second highest average sales price in the 36-month period.  The past two years have seen a higher increase in this month so sellers should pay careful attention to the overall reaction of buyers in the current market to make sure homes are priced to attract the most buyers.

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.
 

Active Listings Analysis:

Sellers:
The month of February saw an uncharacteristic increase in the number of active listings for the second month in a row!  We have a total of 22,335 residential homes actively listed in Maricopa County as of 3/2/14.  Sellers need to continue to watch this trend as we begin to see more competition for getting a home sold – we saw our low in this area in May of 2012 when we only had 9,785 active listings.  Using a real estate consultant is essential to determine how homes should be priced in order to be competitive AND the terms that will need to be available for prospective buyers in order to take advantage of this market.

Buyers:
The current market means that buyers had more homes to consider than last month.  Continue to monitor this statistic, as it WILL be the statistic that indicates how many options you will have in your home search and how quickly you will need to act…the lower the number, the more likely the competitiveness for lower price homes will remain part of the current market.  As always, market activity is local and should be researched with your real estate professional to determine the activity and desirability of the homes that are of interest to you.
 

 

Average Days on Market Analysis:

Sellers:
This is a VERY important statistic to review this month.  February saw a significant increase in the average days on market – a 9.2 percent increase from 76 days to 83 days.  As we transition out of a sellers market and into a traditional market, we are seeing homes remain on the market for a longer period of time.  The longer a home is on the market, the more costly it is to sellers, as they continue to pay mortgage payments and all the other fees associated with home ownership.  Days on market are controlled by appeal to buyers – in condition and in price.  Staging and realistic pricing can dramatically impact a seller’s success in todays’ market.

Buyers:
Inventory continues to increase, providing buyers with more choices.  However, buyers need to be aware that competition for great homes continues to remain high.  Great homes will draw great buyers regardless of the real estate market we are experiencing.  The importance of having a reliable lender AND real estate professional to guide you through this process has never been more important.
 

STOP!

Would you like to know what is happening in your neighborhood?

Would you like to know the value of your home?

Do you need help deciding whether to sell or not or would you like to know if now is the right time to buy?

I would be very happy to get you that information.