The Phoenix Real Estate Market Experienced a 20 Month Appreciation
The Phoenix Metropolitan Real Estate Market experienced a 20 month period of rapid appreciation ending in July of last year. In that time the median sales price rose 70%. In the ten months since then, sales prices have remained relatively flat. Most analysts predict that the sales price of homes will slightly rise over the next 12 months.
Home sales improved by 14.1% in April compared with March. We closed on 7,659 properties in the Phoenix Metro area; in comparison we closed on 8,754 in April 2013, a difference of 1,095 transactions. What is remarkable about this statistic is that the decline in sales comparing April 2014 to April 2013 seems to correspond with the dramatic drop in distressed sales rather than a decrease in demand. In April 2013, we had 809 short sales and 496 bank sales closings which made up the majority of what we lost. In April 2014 we had 210 more traditional sales, which means that even with fewer sales April 2014 was actually a much stronger month than April 2013.
New inventory of recently listed homes decreased by 5.0% to 10,027 properties. The number of homes currently listed for sale also decreased by 1% to 29,627. This is an increase of 47.5% compared with the same period in 2013. With sales increasing again, we dropped for again to 3.87 Months Supply of Inventory. By the most accepted definition, our market is currently in equilibrium between Buyers and Sellers.
The average list price of properties dipped slightly in April as compared with March, but they are still considerably higher than they were in April 2013. The average list price has increased 14.4% in the past twelve months to $302,100; the median list price increased 9.9% to $223,000. The average sales price was $250,600, a year over year increase of 10.0%. The “Days on Market” decreased by one day to 82 in the past 30 days.
Phoenix continues to sort out all of the effects and experiences of a down economic climate. But the strength of its resiliency will be demonstrated by its return to a normal market.
“Now is a great time to own real estate in Phoenix!”