May 2018 Advice for Buyers and Sellers Currently in Market

/May 2018 Advice for Buyers and Sellers Currently in Market

The Cromford Report has published their May 2018 analysis of real estate for the Valley.

  • Supply between $175K-$200K dropped 18% in 3 Weeks
  • Summer is a good time to List Luxury Properties over $500K

 

What Buyers Need to Know:
Supply under $200K has continued to drop rapidly, but the $175K-$200K range has accelerated its decline over the past month far more dramatically than any other price range. After being consistently 30-35% below last year, the active supply level dropped a whopping 18% in a 3-week period putting the current count for this group 44% below last year. Single family homes only make up 41% of active listings under $200K, but they account for 69% of actives between $175K-$200K. As more buyers are looking to condos and townhouses for affordable housing, supply for attached homes under $200K has dropped 33% over the last year. However, condo supply be-tween $200K-$300K has actually risen 10% while single family homes in the same price point have dropped 15%.

What Sellers Need to Know:
We are officially at the peak of the market seasonally for listings in escrow. Over the next few weeks, especially as temperatures reach over 100 degrees in the Valley, ex-pect to see a gradual decline in buyer contracts that will continue through the end of the year. This is a seasonal trend that consistently happens every year and in every price point, even the frenzy market under $200K. The one exception is the luxury market over $500K. While it’s typical to see a decline at the beginning of Summer like everyone else, escrow counts tend to drop for a couple months and then go flat until the end of the year. In fact, luxury supply drops more than buyer activity does in the Summer making it a great time to list luxury property for those willing to brave the heat between June and September.

 

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2018-05-23T11:12:36+00:00 May 23rd, 2018|

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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