JULY 2014 MARKET REPORT MARICOPA COUNTY

July Market Report - Maricopa County  Here are your real estate statistics for last month.  Be sure to call if you have any questions about this report or about how the market is performing.  This report includes MLS data for the past 36 months for Maricopa County only as provided by the FlexMLS system.  Please note that MLS search results fluctuate as data is added to the system and the figures below were obtained on 8/3/2014.
 

(click any graph for larger view)

Closed Sales Report Analysis:
 

Sellers:

The month of July saw a 6.24 percent decrease in the number of closed sales compared to the prior month.  The statistics show that we had 6,101 residential homes sell in July in Maricopa County compared to 6,507 in the month of June.  This compares to 6,904 closed sales in July of last year, so we are definitely seeing a decrease in sale activity.  In today’s market 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/balanced market means a level playing field for both buyers AND sellers.

Buyers:

In our shifted market, buyers are continuing to buy – they want to take advantage of this amazing market due to low interest rates, increased inventory, 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 decreased from $263,846 in June to $257,719 in July, a 2.38 percent decrease.   With the shift in other numbers, sellers need to pay attention more than ever, as we are seeing prices drop, homes remaining on the market for a longer period of time, and few homes moving to pending status.  Sellers who are serious about selling need to ensure that their home is one of the best-priced homes in their local market in order to attract qualified buyers.

Buyers:

This statistic is an indicator that buyers have a small amount of relief when it comes to the average sales price.  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:

For the fifth month in a row, we saw inventory decrease when compared to the prior month.  We have a total of 19,620 residential homes actively listed in Maricopa County as of 8/3/14.  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 has 9,785 active listings – a number significantly lower than our current market.  This shift will impact the price of a home, how quickly it sells, and the terms a buyer is seeking when purchasing a home.

Buyers:

The current market means that buyers had 535 fewer homes to consider this past 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.
 

Pending Sales Analysis:
 

Sellers:

For the fourth month in a row, July saw a decrease in pending sales.  This trend is common this time of year.  Pending sales dropped from 4,773 transactions in June to 4,461 transactions in July, a decrease of 6.99.  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:

Buyers should review this statistic, as it indicates how many buyers and sellers came to an agreement on the sales price and terms of a home sale.  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 individual market in which they have an interest.  This will give them the best chance of being competitive in the search for a home.  Buyers should also make sure they are working with a lender who is knowledgeable about the latest lending trends and options.
 

STOP!

As a reminder, 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.
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.

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