How Did The Housing Market Do in 2015?
I have been reviewing the housing numbers for 2015. After commenting all year that our real estate market was chugging along, slowly doing better than the month before, it appears that we have achieved a solid performance. It is interesting to note that in the past 15 year of collecting housing data, MLS has ranked 2015 dead center as far as sales production.
In December, 6,741 homes were sold, which is an increase of 26.9% compared with November, and an improvement of 3.8% compared to December of 2014. Last month I mentioned that “TRID”, the new lending protocol had affected sales for the October and November but I thought December would be back on track. I was correct, as you see, month over month sales jumped 26.9%, essentially catching us up from the former two months. Distressed home sales in December represented 6.6% of the total number of homes sold compared with 5.9% in November, which is a slight increase.
New inventory of recently listed homes decreased by 3.5% year over year to 5,925 properties. The number of homes currently listed for sale increased by 8.1% to 22,897 properties. This is a decrease of 8.2% compared with the same period in 2014. With the number of homes that are listed for sale decreasing and also the number of properties that have sold also decreasing, our Months Supply of Inventory decreased from 4.69 to 3.4 months.
The average list price in December decreased to $325,300, and the year over year average dropped 1.3%. The median sales price increased last month from $209,000 to $215,000. The average sales price increased in the past year by 3.8%, the median sales price increased by 9.1%, and the price per square foot increased 4.58%. The “Days on Market” increased to 78 days. The month of December saw a 2.5% month over month decrease of homes in foreclosure to 4,261 homes, a decreases of 26.0% year over year.
In October, Freddie Mac published their quarterly report, our real estate market was defined as improving. Of the four metrics comprising the index, Phoenix outperformed national metrics in terms of affordability and mortgage currency, but lagged behind national averages in overall employment and home purchase applications (although home purchase applications showed improvement as 2015 progressed).
With predictions of a stronger real estate sales market developing in Phoenix in 2016, now might be a good time to strategize a purchase of additional investment home. If you are interested in reviewing the numbers of a purchase, please let me know. It will be my pleasure to offer you some strong options.
“Now is a great time to own real estate in Phoenix!”