Pending Listings and the average sales Price per SqFt (psf) have moved upwards this past week when compared to one year and one month ago. At the street level, we’ve also noticed increased activity including multiple offers and quicker sales. Granted, this is the time of year when sales start to take off which is why we want to look beyond this last month’s increase and look at the same period of time compared to one year ago.
Pending Listings (those listings under contract) currently stand at 6,689 compared to 5,047 one month ago. This is a 33% increase. It is also an increase of 5% from this time last year.
The annual average sales price of $130 psf is now at the highest level since December of 2008 – almost 7 years ago. What was the peak? The peak was $190 psf set back in June 2006 which was $190 psf, almost a third higher than we’re at now. Active listings have increased over last month (24,084 vs 23,620) but are lower than the supply of one year ago (26,555).
Keep in mind that ALL REAL ESTATE IS LOCAL. What we’re showing you today are numbers based on the entire Phoenix Metro area and include all residential housing types, including single family detached, condominiums, and mobile homes. The market where you live or are looking to buy in can be and probably is different; hotter, or slower, richer, or poorer – well you get the point. The value of viewing the overall larger market provides a look at trends and on a large basis is pretty accurate.
When we provide a market analysis for a client for a home they’re buying or selling, we’re essentially performing an appraisal such as a professional appraiser would do, and therefore look at the micro rather than the macro. Ideally, we’re pulling sales in the same community as the subject property, but sometimes have to go outside a community up to a mile away. It depends on the number of good comparable sales we can come up with.
Once again we urge those millennial buyers to consider getting pre-qualified/approved with a reputable local lender and strongly consider getting off the fence. With the possibility of continued home price increases, rent increases, and still way low mortgage rates, it might just make a lot of sense for you to move forward now on finding that home. And if you need professionals with a combined experience level of over 40 years, give Jon or I a call today!