February kicks off the busy season in Metro Phoenix real estate, with both buyers and sellers entering the market at a brisk pace from now through June. One of the biggest jumps last month was in the number of new listings, up 64.6% in January from 6,263 to 10,308. February will be an even more popular month for sellers to list, and more homes have historically been listed in March than any other month. That's good news for buyers who have been frustrated with lack of options, but the same buyers will also experience intense competition in price ranges under $400,000.
Overall inventory (Active and Under Contract-Accepting Backups) is just over 20,000 listings, down a significant 8.2% from a year ago and continuing to favor sellers $400,000 and down. Most homes that sell are still going under contract in less than two months, and the average sold price has been steadily climbing, up all the way to $316,234.
The Phoenix Luxury Market is still in recovery mode with prices actually declining in some areas over the last year. The healthiest Luxury Market currently is Chandler with only 5.45 months of inventory over $1,000,000. Paradise Valley is at 10.6 months and Arcadia at 13 months. On the other end of the spectrum is Ahwatukee at 25 months and Fountain Hills at 27 months. The prevailing feedback is that the Dark cabinet, Tuscan style is out and homes that feature that look are being passed on in favor of the White Cabinet, Lighter Countertop, wood look tile, grey tone style that’s in vogue. Some luxury owners are updating in order to move their homes at the price that they feel comfortable with. As with anything though if the price is attractive enough, even if your home is a Tuscan, you can get a contract on your home.
Speaking of the ever so hot $400,000 and under range there is currently only 2.45 months of inventory with the Average Days on Market at 57. We are seeing multiple offers and or homes that are updated/priced correctly selling quickly. Interest rates have jumped a bit and are projected to rise which will impact monthly payments and affordability moving forward. This will hopefully curb the number of offers on these properties allowing first time home buyers to not have to compete with investors and multiple buyers.
If you’re looking to make a move give us a call to discuss your options.