If you are in the market for a home in the Phoenix metro area you probably realize the market is a little challenging.
Last month when I met with clients, I would tell them prices are up about 27% since last August and inventory was down to the lowest we have seen in about seven years. This market was hotter than the summer weather here in July.
This week when I meet with clients I will tell them mostly the same thing, but with one noticeable difference. Prices are now up 32% since last August.
When will it slow down? Some say it already has. Others say this fall. The truth is we don’t know for sure, but it has not slowed down yet, and with numbers like 3.66 and 7838 it is not likely to happen soon.
There were many reports on Friday about 3.66. As in interest rates at an all time low of 3.66%. It wasn’t that long ago when we were talking about insanely low rates of 4.8% and whether they could last for much longer. Buyers realize that with interest rates this low, if they are going to buy, now is the time to get into the game. With these low interest rates the number of first time buyers, and the number of investors looking to buy are huge. Both of them realize conditions may never be this good again.
I am writing this on Sunday night and there are currently 7,838 active single family homes for sale in Maricopa County. Only 7,838! For those of us who remember 30,000 just a couple of years ago, this number seems almost impossible.
Can I still get a deal?
Can you get a deal in this Phoenix market? Well, I guess that depends on what your definition of a deal is. If you are buying a house and looking to steal it well below list price, keep looking. Maybe you could have done that in 2008, but in 2012 there isn’t a good chance of doing that.
Let’s look at the single family closing with a list price between 50,000 and 150,000 in the last 30 days.
- 915 Total closings
- Average list price $106,032
- Average sales price $106,555
Yes, if you are looking for a house under $150,000 there is a very good chance it is going to sell at or above list price. This is an average and every house will be different, but this is very typical of what our agents are seeing every day.
Where to now?
Where is the market going from here? No one knows for sure. Right now there are no signs that the market is slowing down. If you are interested in getting pre-qualified for a loan and to see if you can buy a home click here. If you are interested in buying or selling a home or to explore your options we would be glad to talk to you.