Monday Market Snapshot - We are Seeing Price Reductions
Here is what has happened over the weekend:
1033 Properties came on the market
1292 Properties went under contract and or are sale pending
We started the weekend on Friday with 7,149 properties available for sale (Active) and have 7,047 this morning.
NOTE: We usually start the week with less on market than what is available on Friday when demand is high.
Active Listing Inventory is up 24.7% from last month but that supply number is so low we are still seeing multiple offers on well priced and attractive looking (updated/upgraded/good condition) properties. However we are seeing more price reductions come through from our searches set up for our buyers.
Yes price reductions! Does that mean prices are coming down? NO. Those properties are simply overpriced. Sellers and their agents are being a bit greedy and trying to predict the next price increase. You cannot price a property assuming where the price will be 30 days from now. To price a home properly in this and any market you need to rely on the most recent sales comps, sprinkled with pending sales.
So if your most recent comps are $410,000 to $415,000 where should you price? At $410,000 to $415,000 not $425,000 or $430,000. If you price with the most recent sold comps you will show value then you allow the market to dictate the next price increase. We did this with our last listing and priced at $410,000. We got 6 offers and it will close for $445,000 on Wednesday.
If you have any questions about the Arizona real estate market or interested in selling your property give us a call.