Phoenix Metro Area Market Update – August 2019

August 25, 2019

Phoenix Metro Area Market Update – August 2019

Inventory is the story for the greater Phoenix real estate market in August! We’ve previously talked about our low inventory of homes driving a very active market, with price-segment-specific hyper-activity. In July, the number of active listings was down 8.5% from June and 4.1% year over year. Furthermore, the number of active listings this month is down an additional 11% from last month! And as you would expect, the number of listings under contract is up 13.5%, further reducing available inventory.

For homes under the $400,000 price point, we are seeing frequent, multiple offers, and many zip codes in this price range are highly price competitive with very fast turns. Listings over $400,000 are less competitive, however, still very seller favorable. To compete successfully, buyers may need to up their budget or downsize their expectations.

Currently for August, our median sales price is up 5.7% year over year, so healthy but not overheating. In addition, the average price per square foot is $170.16, which is up 5.8% from last year.

Interest Rates

Interest rates are somewhat harder to forecast but should trend flat to down. For those of you following the trade discussions with China, tariffs are ramping up and negotiations are moving slowly. The President is pressing the Fed to further lower interest rates, and reacting to a slowing world economy, the Fed cut rates by ¼ point at its last meeting (federalreserve.gov, July 31, 2019).

“The Federal Reserve lowered its benchmark rate by a quarter point Wednesday as an insurance policy not against what’s wrong with the economy now, but what could go wrong in the future. It was the first rate cut by the central bank in more than a decade.” (CNBC, August 1, 2019)

Current mortgage rates are 3.6% for a 30-year conventional mortgage, with 0.6 points. (Freddie Mac, August 8, 2019)

Raw Data Source: ARMLS

What does all this mean for today’s buyers and sellers?

Our very low inventory and falling interest rates have made the August 2019 market in Greater Phoenix an unusually active one. Buyers and sellers are encouraged to reset expectations and do their homework. Understand your specific neighborhood market using solid, comparable data, and come prepared to act as this market can move very quickly!

Sellers, get your home ready by freshening it up and pricing smart. Check out my blog, Your Pre-Home Listing Checklist, for more information on how you can earn top dollar for your home. However, if you are in doubt about how much of this to do to get “ready to sell,” feel free to give us a call — we do this assessment all the time.

As always, work with a knowledgeable REALTOR® that you trust. If you have any questions at all about current market trends, please feel free to give us a call! To view the Phoenix Metro Area Market Update for last month, click HERE.

Contact Us…

We are full-time, experienced Realtors working in Queen Creek and the surrounding areas.  With decades of East Valley real estate experience under our belts,  we are here to answer any questions you may have.  Please do not hesitate to reach out to Karen Berg at 602.919.2375 or April Anderson at 480.272.1977.
We’re looking forward to hearing from you soon!

–Karen Berg and April Anderson

United Brokers Group
21321 E Ocotillo Rd F113
Queen Creek, AZ 85142

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602.919.2375