January 2017 – Phoenix Real Estate Market Statistics

2016 Sales up 7% over 2015

2016 Median Sales Price 7.7% Higher than 2015

Welcome to 2017!

The headlines these days are full of projections and reflections for the Phoenix Metropolitan Area resident real estate market. All together the Anthem, Desert Hills, Scottsdale and Phoenix real estate markets had a great year!

To complement our monthly measures here are some year-end numbers to reflect on.

2016 MLS Sales – Up 7.0% overall compared to 2015

72.9% of sales were under $300,000 (# of sales up 3.4%)
19.6% of sales were between $300,000 and $500,000 (# of sales up 20.2%)
6.1% of sales were between $500,000 and $1,000,000 (# of sales up 15.4%)
1.4% of sales were over $1,000,000 (# of sales up 8.1%)

2016 New Listings – up 4.6% overall compared to 2015

65.8% of new listings were under $300,000 (# of new listings up 0.8%)
22.0% of new listings were between $300,000 and $500,000 (# of new listings up 13.5%)
9.2% of new listings were between $500,000 and $1,000,000 (# of new listings up 13.6%)
3.0% of new listings were over $1,000,000 (# of new listings up 5.7%)

2016 Appreciation based on Annual Sales Price per Square Foot – up 5.4% from 2015

Under $300,000 – up 7.6%
$300,000 – $500,000 – up 2.0%
$500,000 – $1,000,000 – Less than 1% change
Over $1,000,000 – Less than 1% change

It’s been a good news/bad news year for sellers over $500,000. The good news is that more buyers purchased in the higher price ranges in 2016 than in 2015. The bad news is the neighbors also noticed increased demand and listed their homes too, increasing the number of new listings on the market simultaneously. This increased supply, combined with builders getting in on the action over $250,000, created a more competitive and balanced market and put price increases in check.

It’s been good news/bad news for buyers under $300,000. The good news is their homes have appreciated nicely over the past year. The bad news, finding move-in ready homes and winning the bid was more stressful and competitive than many expected. Especially for single family homes under $200,000. (Yes, they do exist.)

Looking forward in the short term, the market can expect more buyers emerging with improved credit scores as we move farther away in time from the foreclosure and short sale crisis. Recent announcements regarding FHA loan limit increases and lower mortgage insurance premium fees signify a loosening up in lending that will contribute to more demand for listings under $300,000. Higher interest rates will cause some buyers to purchase smaller homes than they anticipated, putting even more pressure on the market under $300,000; which is already short of supply for existing demand. With nearly 73% of all sales in this price point, it’s reasonable to expect appreciation to continue to be positive for the Phoenix Metropolitan, Anthem, Desert Hills, Scottsdale and Phoenix real estate marketsoverall.

If you’re interested in purchasing or selling a home you can start by Contacting Us directly or start searching for your new home here – Anthem, Desert Hills, New River, Phoenix, Mesa, Scottsdale, Tempe, Glendale or Surprise.

For Buyers:

There’s both good and bad news for first-time home buyers this month. The good news is that there’s been a 22% increase in single family active listings asking between $175,000-$200,000 over the last 10 weeks, going from 1,065 to 1,295. Current inventory is 10% higher than where it was in week 49 of last year, adding some much needed choice to a high demand price range. The added supply is not universal across the valley; increases have been marked specifically in Buckeye, Surprise, Sun City, Peoria and Mesa.

The bad news for home buyers is that supply overall is down 3.7% while the level of competing buyers is remaining seasonally consistent. The Southeast Valley specifically has not seen the typical increase in supply that happens this time of year. This indicates that the area will kick off 2017 with low supply just before the expected increase in buyer activity come February. In this case, the cost of waiting to purchase will be a lack of choice and possibly having to compromise on the condition or location of the property they choose to buy.

For Sellers:

Bad news for buyers usually translates into good news for sellers, especially after positive news reports of Realtor.com ranking Phoenix as the #1 projected real estate market in the country for 2017. However, it’s still not a market to be overpriced regardless of the strong demand for homes. Some price ranges have more competing listings than others, especially in areas such as North Phoenix, Mesa, Gilbert and Peoria where there is competition from new home subdivisions. Permits for single family homes have been on the rise to accommodate the demand. This provides more choice for buyers in those areas, balances out the market and keeps annual appreciation in check. The areas projected to have the highest appreciation rates are those where there is a high level of fix and flip activity along with a more affordable price range under $175,000.

This is the data taken from the entire Metro Phoenix Area. Provided by David Patterson, Designated Broker at Quatnum of Arizona, REALTORS 623-476-5005