May 2018 Phoenix Real Estate Report

phoenix real estate market updateHighlights of my May 2018 Phoenix Real Estate Market Report:

1. How fast are homes selling? Average number of days on market for homes sold is 65 (down 9 from last year)
2. How many homes are for sale? We currently have 20,363 properties for sale (down 6.5% from last year)
3. What is the average sales price? Homes across the valley are selling for $322,745 (up 10.3% from last year)

For recent MLS sales data and charts, click here.

What does this mean to homeowners? The Phoenix real estate market remains in balance, though still offering a distinct advantage to sellers right now. April’s new supply (measured by homes listed for sale last month) was up only 1.2% from April 2017, while April’s demand (measured by homes sold last month) was up 3.9% from April 2017. When demand increases by 3x more than supply does, these numbers are very positive news for home sellers and suggest further increases in Phoenix home values throughout 2018. Anyone with concern over valuation may take comfort in the fact that demand and supply are working well together, with no expectation of any price correction in the near future. New home construction is booming everywhere you look, but this has not hurt existing home sales at all, as witnessed by the continued rise in home values.

What has happened to home prices? With relatively lower levels of inventory versus historical measures, home values are up over 10% on average across Phoenix in the past 12 months. Even with plenty of new home construction across the valley, home prices keep rising and supply is struggling to keep up with strong demand, as evidenced by our current market absorption rate. It remains at an extremely low level of 2.52 months (keep in mind, lower is better if you are selling) which is down from 2.83 months at this time last year. Absorption rate means that if no additional homes were listed for sale, it would take 76 days for every home listed in the valley to sell, based on current level of demand. Last year it would have taken 85 days to absorb every home offered for sale in Phoenix.

Curious about your current Phoenix home value? Ask me for your Phoenix Property Value report created especially for your home and emailed to you within 24 hours. It is filled with local market data, demographics, pricing trends, your home’s estimated value and my confidence rating.

Realistic pricing and professional photography to showcase a property are essential in maximizing value and minimizing time on market. Ask about my written guarantee to sell a home within 67 days at a price acceptable to the owner or they get $1,000 from me at closing.

RE/MAX Renaissance Realty
9059 W Lake Pleasant Pkwy #B200
Peoria, AZ 85382