Phoenix Arizona Real Estate Market Update - Is there a looming Housing Bubble or Housing Crash?
There has been more news out there that we are in the beginning of a #housingbubble or a #housingcrash. Is that true? Like last week the answer is NO. Let’s get into it and take a closer look at the Phoenix Real Estate Market.
There are 5,333 Homes for Sale
29,367 Homes Sold over the Past 90 Days
The Inventory Absorption Rate is 16.34 Days
The Average Days on Market is 30
The List to Sales Price Ratio is 101.1%
The Average Home Value is $492,757
The Value 1 Year ago was $367,797
1 Year Increase in Value is 25.35%
Let’s go a little deeper…
Are we in the midst of a bubble or crash - NO! We have 16.34 DAYS of inventory. If that number jumped to 23 in a month I’d say we are cooling off a bit. However in order for us to be in just a normal market the number of homes available for sale would have to jump by 1,000% in a very short timespan. So it would have to jump from the 5,333 properties we have currently on the market to 53,000 quickly. That would put us at 5.5 Months of Inventory which is considered normal. In a normal market real estate usually appreciates 4-6% per year.
What trends are we seeing?
The Average Days on Market have steadily gone down. In March we were at 40 Days and now we are at 30. The List to Sales Price Ratio has also been on the move. Back in March we were at 99% and now we are hovering just above 101%. The average value of a home has gone up 25.35% or $124,960. What we’re seeing is more homes stay on the market longer before going under contract. Even though properties are seemingly selling more quickly we are seeing more and more of them stay on the market because they are either overpriced or do not show well. It’s too early to tell whether this is being caused by buyer fatigue or just over zealous pricing. If I had to put my finger on it I’d say its more greed than fatigue.
That’s it for this weeks market update. Please be sure to like or follow us. Stay safe out there and if you have any questions about the Phoenix Real Estate Market you know whom to call.
Text or Call Dean: 602-391-9434