The Phoenix metro housing market is absolutely on fire.
There are 17,000 active homes on the market today, which is down 14.2% from last year, and it has dwindled over the last few years.
This isn’t uncommon nationwide; there is definitely an inventory shortage, which is causing housing prices to rise. Additionally, there are about 12,000 homes that currently have an offer and are waiting to close.
The median sales price went up $20,000 last year alone. Just think about that: If you’re a homeowner, you got an extra $20,000 of possible equity. If you didn’t buy last year, you need to get out there and buy now.
There are a couple of other things that I’d like to share with you:
- The percentage of seller concessions awarded to buyers has dropped down to 24% in the first quarter of 2018. This has weakened buyers’ ability to negotiate both price and receiving closing cost assistance from sellers.
- The highest percentage of closings with seller concessions in the last 30 days were sales prices between $150,000 and $250,000 in the 30% to 36% range. Only 3% of homes in our more affluent areas sold with seller assistance.
“There is definitely an inventory shortage, which is causing housing prices to rise.”
When it comes to listing and getting the right price for your house, it’s definitely a hot market. The percentage of successful sales over asking price is increasing. So far in March, 17% of sales closed over list price. That’s up from 14% in March of 2017. Properties sold between $100,000 and $200,000 had the highest percentage at 24%. One out of four homes have sold have sold above list price. This is followed by the $200,000 to $300,000 range, where 18% of homes are closing above full price.
Once you get into the higher market, do you think it stays the same?
Actually, it’s on fire as well. The market between $300,000 and $1 million had the most improvement, with 12% of homes selling over list price compared to only 7% this time last year. We couldn’t find anything over $1 million that closed over list price, but that just goes to show you that we’re in a very robust market.
You need to make sure that you’re pricing your house properly. If you’re writing an offer as a buyer, you’ve got to make sure you come in with your strongest offer, because there’s competition right around the corner.
I hope this information is useful to you. If you have any questions you’d like answered on my next video, please send them to me. If I pick yours, I’ll send you a $50 gift card to the restaurant of your choice. For any other questions, feel free to reach out to me. I’d be happy to help.
