Phoenix Arizona Real Estate Market Update - Prices are still rising
REAL ESTATE MARKET UPDATE - 6/18/2021
For the 8th consecutive week the number of available properties for sale has gone up. However this is not stopping prices from going up, yet. Let’s get into it and take a closer look at the Phoenix Real Estate Market.
There are 5,867 Homes for Sale
29,453 Homes Sold over the Past 90 Days
The Inventory Absorption Rate is 17.92 Days
The Average Days on Market is 29
The List to Sales Price Ratio is 101.2%
The Average Home Value is $498,927
The Value 1 Year ago was $364,629
1 Year Increase in Value is 26.91%
Let’s go a little deeper…
The doom and gloomers think that inventory going up like it has is a sign of an impending housing apocalypse. I hate to disappoint but that isn’t happening. Yes the available inventory has gone up but there is just 17.92 days of inventory and the average home value continues to go up. In fact it’s $134,298 higher than it was this time last year and up nearly 27%. The demand is over double what it was last year.
What trends are we seeing?
We reported last week that we are seeing more properties on the market for 14 days or more. This continues to be a trend and now 53% of the active properties have been on market for 14 days or more. What does that mean? Well, if it continues for a few weeks we should start to see things slow a bit. By slow I mean not having 10-15 offers. You’ll see 5-7 offers. You’ll still see offers over asking but not as many. Now if this continues for a few months then you’ll see prices slow. They will not drop like a lead balloon though. Instead you’ll see them not going up by $3,000 per week. They’ll go up by less and less, eventually seeing normal appreciation. And remember normal is 4-6% per year currently we’re at just under 27%.
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 at 602-391-9434 with any of your #Arizona real estate questions.