December 2017 Advice for Buyers and Sellers Currently in Market

/December 2017 Advice for Buyers and Sellers Currently in Market

The Cromford Report has published their December 2017 analysis of real estate for the Valley.

  • 23% of Listings Under $200K Sell Over List Price
  • Greater Phoenix Appreciation 6.2% Overall, But Varies

 

What your buyers need to know:

There are currently 1,399 normal* single family listings between $100K-$200K in Greater Phoenix and supply levels are not expected to rise in this price range going into 2018. In the last half of 2017, an average of 1,396 normal single family new
listings were added each month while 1,375 per month were sold in this price range. In November, 23% sold over list price compared to 27% last June and 28% closed with full price offers compared to 28% in June.
*A normal listing is one that is not a short sale or foreclosure.

What your sellers need to know:

The overall appreciation rate based on annual sale price per square foot in Greater
Phoenix is 6.2%. However, supply and demand are not the same by price range. The greatest appreciation rates are under $200K due to a lack of new construction that would typically balance out the supply shortage. Sales under $200K are 33% of all sales this year, so their rate has a large effect on the overall average. New multifamily and single family homes are being added to the $200K-$500K price range to
accommodate increased demand, but it’s still not quite enough. The market is balanced between $500K-$1M, while supply is still higher than demand over $1M despite a 10% rise in 4th quarter contracts. As a result, appreciation rates are as follows by price range:
• Under $200K: 7.7%
• $200K-$500K: 3.5%
• $500K-$1M: 1.7%
• Over $1M: 0.1%

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2017-12-11T17:59:22+00:00December 11th, 2017|

About the Author:

A native Phoenician serving Arizona Homeowners with over 15 years lending experience and currently the Vice President and Partner of Signature Home Loans LLC. Eddie has been a mortgage broker since 2003.

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