December 2017 Phoenix Real Estate Report

phoenix real estate market updateHighlights of my December 2017 Phoenix Real Estate Market Report:

1. How fast are homes selling? Average number of days on market for homes sold is 68 (down 5 from last year)
2. How many homes are for sale? We currently have 21,534 properties for sale (down 7.5% from last year)
3. What is the average sales price? Homes across the valley are selling for $307,959 (up 9.3% from last year)

To see all MLS sales data and charts, click here.

What does this mean to homeowners? The Phoenix real estate market is in very good shape. Sellers are on average getting 96.5% of their asking price, up from 95.9% at the start of this year. November’s new supply (measured by homes listed for sale last month) was down 0.2% from November 2016, while November’s demand (measured by homes sold last month) was up 4.6% from November 2016. These numbers would appear to continue favoring sellers and indicate that in theory we can predict more increases in home values, though not as much as we may expect since some argue that demand would be stronger if there was more inventory (selection) of homes for sale.

What has happened to home prices? With continued reduced levels of inventory versus historical standards, home values are up 9.3% on average across the valley in the past 12 months. Even with plenty of new home construction in all areas of 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 2.71 months (keep in mind, lower is better if you are selling) which is down from 3.17 months at this time last year. Absorption rate means that if no additional homes were listed for sale, it would take 81 days for every home listed in the valley to sell, based on current level of demand. Last year it would have taken 95 days.

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