Phoenix Metro Area Market Update – December 2019
In December the greater Phoenix real estate market remains “available inventory challenged,” and active listings for the month are down 25.3% year over year, at 13,869.
The low level of available units is driving higher prices, and in the case of lower-priced homes, multiple offers. Interestingly, these lower-priced homes (less than $250,000) are also the largest group that are being sold with seller help with closing costs (32% of homes below $250,000 sold with some kind of seller closing assistance) (Cromford Report, December 2019).
The mid- and luxury-priced homes are also experiencing the benefit of our very healthy real estate market, with sales of homes over $500,000 up an impressive 16.5% year to date and homes over $2 million up a whopping 21% for the same period.
As reported last month, interest rates continue to accommodate. This month’s 30-year rate is 3.68% with .5 points (Freddie Mac, December 5, 2019). The current consensus among Wall Street analysts is for rates to remain stable for the foreseeable future.
What does all this mean for today’s buyers and sellers?
For both sellers and buyers, rates should remain steady and very low by historical standards. Inventory shows little sign of growing, especially as builders are not building at the same rate as they did during previous growth periods. Both these factors mean that prices should continue their upward trend, at least in the near future. However, and this is important, each neighborhood and price range will have its own dynamic, its own profile. As the old saying goes, all real estate is local.
For sellers, the market looks very healthy overall; however, you might benefit from advice from an expert to better understand what your specific neighborhood’s dynamic is like. The competition is still quite intense, and buyer expectations do rise with prices. If your home is less than $250,000, you may see multiple offers but will likely be asked for closing assistance.
Whether buying or selling, please do your homework and come prepared to act in this rapidly moving market. Initial pricing (getting the list price right, from the beginning) and preparing your home for presentation (cleaning, de-cluttering, touching up paint) will give you a head start on your competition and drive a higher selling price for your home too.
Sellers, 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.
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 April Anderson at 480.272.1977.
We’re looking forward to hearing from you soon!
United Brokers Group
21321 E Ocotillo Rd F113
Queen Creek, AZ 85142