Real Estate Statistics February 2014
Phoenix, Arizona
Home Sales For Phoenix, Arizona February 2014
New Inventory – Resale Homes
Total Inventory – Resale Homes
Active Inventory vs. UCB (Homes Under Contract)
Months Supply Of Inventory
New List Prices
Sales Prices
Real Estate Statistics February 2014
Sales Price Forecast
Pending Foreclosures
Distressed Sales
Average Days On Market
Click here to see the report in it’s entirety.
Football Is Over, Time To Get Back To Business.
With January at a close, we see some similarities and differences with the more recent historical real estate sales data. The winter months (Dec, Jan, Feb) are almost always our slowest months across the board in regards to real estate sales here in Arizona. That has held true for this winter.
Monthly Home Sales Are Down.
Monthly home sales here in the Phoenix Metro area have dipped to 4,797 units for the month of January, which is roughly a 17% drop year over year and nearly a 20% drop month over month.
The drop in monthly home sales indicates a weakening of demand. Meanwhile, we’re starting to see a rise in new listings (inventory) on a monthly basis. We have seen a rise in resale home inventory by 11% year over year and nearly 80% month to month, bringing our total real estate inventory to 28,464 units.
Our Supply Of Home Inventory Is Increasing.
When we take the drop in monthly sales and increasing inventory into consideration, we start to see our months supply of home inventory increase. Most real estate professionals will tell you that the closer we get to 6 months worth of inventory, the closer we get towards a buyers market. As you can see from the above graphic (Months Supply of Inventory), we have 5.93 months of real estate inventory here in Phoenix.
We are at a balance of the market, if we’re not already in a buyer’s market.
Good News For Buyers.
This is excellent news for home buyers here in Phoenix, Arizona, as more inventory means more choices. Less demand also means that there is less competition than the average buyer has experienced over the past several years. That means less offers per home listed – not as many multiple offer situations (on a single home for sale) as we’ve seen in the recent past.
What does this mean for sellers? Take a look at the new list price graphic:
Time For a Reality Check?
What we’re seeing now, with the jump in new listing inventory is the possibility that these new home sellers are not quite in tune with what the market is up to. Less demand for homes and rising home inventory, typically are not a good mix. Home sellers will need to come to terms with the reality of less home buying demand and price their homes accordingly, to be able to get their homes sold at the best price and in a reasonable amount of time.
We are just barely starting 2014 and the real estate market seems to be making a shift. There is nothing that we can do, except watch to see how this year plays out. Be sure to stop back frequently to stay informed on the direction of our market.
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