Highlights of November 2017 Phoenix Real Estate Market Report:
1. How fast are homes selling? Average number of days on market for homes sold is 65 (down 9 from last year)
2. How many homes are for sale? We currently have 21,246 properties for sale (down 7.8% from last year)
3. What is the average sales price? Homes across the valley are selling for $296,737 (up 4.4% from last year)
What does this mean to homeowners? The Phoenix real estate market is in very good shape. Sellers are on average getting 96.6% of their asking price, up from 95.9% at the start of this year. October’s new supply (measured by homes listed for sale last month) was down 1.3% from October 2016, while October’s demand (measured by homes sold last month) was up 4.3% from October 2016. These numbers would appear to favor sellers and indicate that in theory, we can expect more increases in home values, though not as much as we may expect since some argue that demand would be stronger if there was more inventory (selection) of homes for sale.
What has happened to home prices? With continued reduced levels of inventory versus historical standards, home values are up 4.4% on average across the valley in the past 12 months. Even with plenty of new home construction in all areas of the valley, home prices keep rising and supply is struggling to keep up with strong demand as evidenced by our current market absorption rate. It remains at an extremely low level of 2.68 months (keep in mind, lower is better if you are selling) which is down from 3.17 months at this time last year. Absorption rate means that if no additional homes were listed for sale, it would take 80 days for every home listed in the valley to sell, based on current level of demand. Last year it would have taken 95 days.