September 9

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Phoenix Real Estate Trends | August 2014

Phoenix Real Estate Trends August 2014

Not sure what else to title this, but I hope this hits the mark.  Are you currently in the market to sell?  Are you wanting to get the most for your home, and do so as quick as possible?   As a professional real estate agent, knowing the Phoenix real estate trends is a MUST.  Lets examine the chart below, which shows original list price, to sale price for the ARMLS, which serves mostly the metro Phoenix area and suburbs.

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Information is deemed to be reliable, but is not guaranteed. © 2021

What does this super simple chart show you as a potential home owner and possible seller?  The most important aspect this chart shows is that homes are selling for BELOW list price, on average across the ARMLS.  Notice that for the month ending August 2014, the average for the mls recent sold properties was 94% of list price.  Let us break that down to an example:

Home originally listed for $200,000

Home average sales price $188,000

Dollar amount on average less than original list price was $12,000

What can you do to make sure you make the most on your sell?  Price it right, and price it correctly from the start of the listing.

 

 

Lets also look at one other factor for today’s article, and that is absorption rate.

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Information is deemed to be reliable, but is not guaranteed. © 2021

What is absorption rate?  This is a term we use that informs how much inventory we have, and based on recent sales, we calculate how long it may take to completely sell off all homes.  A buyers market is over 3 months inventory and a sellers market is under 3 months inventory.  Currently we see that the inventory is over 4 months, which of course suggests the Phoenix Real Estate market is experiencing a buyers market.  Translation for this buyers market would be that the buyers have more choices, sellers are having to compete for buyers, homes stay on the market longer, and one could potentially see homes selling for under list price.  Refer to the first graph, and now this may make a little more sense.  It is a buyers market, buyers have more choices, sellers that need to sell may have to sacrifice a bit in order to get a home sold.

As a seller how can one market home so as to not have to make a major sacrifice?  It really will all come down to the market, the competition, the condition of the home, how easy home is to show, and lastly value of the home in the eyes of the buyers.  Pricing the home adequately will give home the highest exposure, and hopefully gain seller multiple interested parties, and as such the ability to bargain the best deal for yourself.

Hope this article has shed some light on the current state of Phoenix Real Estate trend.  If your looking to sell your home, be sure to get a experienced, competent, and accurate home evaluation – as well as an realtor with a marketing plan to give your home the highest exposure in this current market.


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