Market Report - May 2013

Report overview:

This report includes MLS data for the past 36 months in Maricopa County only as provided by the FlexMLS system.  Please note that searches fluctuate daily when running these reports; these figures were obtained on 5/3/13.

A reminder that you need to meet with a real estate professional to see how statistics impact the area where you are considering selling or buying – blended statistics will not be as accurate as a more detailed report that your real estate professional can provide to help you with your decision making.

Total # of Closed Sales (36 Month Overview)

(click any graph for larger image)

Closed Sales Report Analysis:

Sellers:
April did not follow the same pattern as the prior two years, as we saw an increase in the number of closed sales – an increase of nearly 7.5% over the month of March. The statistics show that we had 7,731 residential homes sell in April in Maricopa County. For sellers, this means that there are fewer homes remaining on the market and that buyers continue to be extremely active and successful.

Buyers:
For buyers, this mean that the shortage of inventory remains as an important factor in buying a home or investment property. Buyers should continue to carefully work with their real estate professional to understand the market AND how they can be competitive with the market demand and other buyers who may be in a financial position that is more appealing to the seller.
 

Average Sales Price (36 Month Overview)

 

Average Sales Price Analysis
 

Sellers:
April saw the average sales price of a home in Maricopa County increase by 3%  from $230,876 to $237,810; this is the highest average in the 36-month reporting period. Sellers need to remain diligent about pricing homes according to the current market and to understand how this increase impacts individual homes.  Sellers are encouraged to spend time with their real estate professional to determine what is happening in their local market.

Buyers:
This stat is an indicator that buyers continue to pay more for homes than in the past 36 months. Educated and savvy buyers understand that a competitive market gives them fewer options for home choices, negotiating on price AND looking for concessions from a seller.  Although this may vary from area to area AND from price range to price range, buyers need to make sure they are fully informed regarding the individual market in which they have an interest.  This will give them the best chance of being competitive in the search for a home.

Monthly Expired and Cancelled Listings (36 Month Overview)

Expired & Cancelled Listing Analysis
 

Sellers:
April saw an increase of 8.3% over the prior month.  1,767 homes left the market without selling.  The lower this number, the better sellers are succeeding in selling their homes. This is the second month in a row that we have seen this number increase, so sellers should remain very focused on monitoring their local market to ensure that they are pricing homes and offering terms that are appealing to buyers. This number shows how many sellers “gave up” on offering their homes for sale to potential buyers.

Buyers:
For buyers, be aware that there are 1,767 fewer homes to consider.  At a time when inventory continues to shrink, this means an even tighter market for buyers. Buyers can expect more competition and less room for negotiation on price and/or concessions from sellers. A shrinking market means that savvy buyers will understand that they need to be prepared to act quickly on available homes and  now that the ability to get a “deal” on this inventory is more than likely not an option. Continue to watch this trend, as this, combined with price, days on market, and list to sales price ratio are an important indicator of what buyers need to do in order to be successful in closing on the home of their dreams.

Distressed Sales

 

Distressed Sales Analysis
 

A bank owned/foreclosure home is one that the seller no longer owns – it has been taken over by the lender(s) who had a note on the home. Short sales are homes where the seller is negotiating with the bank to “forgive” a portion
of the debt in order to avoid foreclosure.

The market continues to shift, as we saw 76% of sales in the month of April classified as “non-distressed” sales.    This is the highest this has been since this report was first generated several years ago. Bank-owned sales remained at 11% of closed sales, and short sales dropped from 15% to 13%.  Sellers and buyers need to monitor this trend to see how the market continues to respond to the current inventory.