Phoenix Arizona Real Estate Market Update - The Inventory Absorption Rate is Approaching 25 Days
The number of available properties for sale went UP 1.3% but Pending sales are also UP this week 1.22%. What else is going on? Let’s get into it and take a closer look at the Phoenix Real Estate Market.
There are 7,344 Homes for Sale
26,629 Homes Sold over the Past 90 Days
The Inventory Absorption Rate is 24.82 Days
The Average Days on Market is 27
The List to Sales Price Ratio is 101.3%
The Average Sales Price is $499,867
The Average 1 Year ago was $387,690
1 Year Increase is 22.44%
Let’s go a little deeper…
For those keeping close attention you probably noticed that Sold number is lower than last week and quite a bit lower than what we’ve been seeing over the past 4 months. I think it’s a mirage because we are almost to the end of the month. Escrow closings usually spike the last 2 days of the month which are Monday and Tuesday next week AND I pulled data late this morning so that Closed number should pick up after today and significantly next week.
What trends are we seeing?
The inventory absorption rate continues to work its way upwards with 24.82 Days of Inventory and is up 10 Days since April 30th of this year. Let’s put this into perspective though. Last year at this time we were also approaching 25 Days. That is still very low supply. And I know I keep saying this but NORMAL starts at 5 Months of Inventory. For those of you that don’t know, in a Normal Balanced Market prices do not go down, they still go up on average by 4-6% per year. Also consider this if you’re thinking that renting is a better option. Think again. Rental Rates are projected at minimum to go up by 7% AGAIN next year AND the rental vacancy rate in Phoenix is at 3.3%. That’s a historic low.
The percentage of properties staying on the market longer than 14 days or more went up this week from 60% to 62.4%. 39.9% of homes have been on the market for 30 days or more.
What does this all mean if you’re a buyer?
Nothing has changed from last week. You will continue to see more choices and less competition.
What about if you want to sell?
You can no longer guess the next price increase. Thats what is going on and we are seeing properties stay on the market longer and some are having price reductions. You’re better off pricing with the most recent comparable sales and allowing the market to dictate the price appreciation in the way of multiple offers.
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.
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