The real estate market in the Phoenix Metro area continues to strengthen. We are “in season” some might say, buyers are out shopping and that is creating a healthy increase in sale prices.
We are still not seeing a plethora of bidding wars driving pricing to unsustainable levels as we have seen in the past (circa 2005-2008). Personally, I don’t see that happening again anytime soon.
We do see a steady, healthy increase of pricing that is considered to be normal growth in a healthy economy.
Below are some statistics from the month of March showing the continued growth. Couple these stats with increasing mortgage interest rates and the results are going to be:
For Buyers. Waiting too long to buy could result in a higher purchase price and a higher monthly payment. You may be forced to give up a want or need in your new home to keep your monthly payment within your budget.
For Sellers. The value of your home is increasing, however, history shows that it could be short lived. Just like the stock market you want to “sell high”, but waiting too long could find you on the other side of the hill where you need to lower your price and offer many concessions. Buyers are out there, but they are savvy. A fair deal now sells at a very good price. Waiting could put you in a less positive position.
Consider too that you are likely looking to buy a new home. The increased cost of the new home will offset the “few thousand more” that you might get by waiting. Now is a good time to sell.
Let’s look at the numbers:
Monthly sales are up! As I said before, this is a great time of year to sell as buyers are shopping before the summer heat hits us.
There are more homes coming on the market, again due to the time of the year, but we are still well below average for total listings available. This is a “sellers market”, but buyers are seeking out fairness. Overpriced homes tend to sit.
Take the advice of your listing agent on pricing and strategy in order to sell as quickly as possible for top dollar.
Not a surprise to see the total days on the market go down a bit this time of year. This number is the average in the entire Phoenix Metro area. Your neighborhood will vary. Some areas are selling in a matter of days. Contact me if you would like more specific information.
To illustrate the “Sellers Market” a bit more. If there were no more listings added, and the pace of sales continued as they are, there would be no homes for sale in the Valley in just over 2 months. Of course that’s not going to happen, but it shows that it pays for you to have a well connected real estate agent to find your home, get your offer accepted, and get it closed before someone else snatches it up.
Sellers – Now is the time to get a great price on your home. Use an experienced REALTOR® to advise on pricing in your neighborhood, and market your home directly to buyers and buyers agents, stage your home beautifully, and get it sold fast!
Buyers – Don’t wait! Interest rates are on the rise as expected. Just last week they went up about .15%. That may not sound like a lot, but when you look at the monthly mortgage payment that you have allowed in your budget, an increase of .15% could force you into a lower priced home for the same monthly payment. Perhaps you won’t be able to afford that 3rd garage, or extra bedroom?
Bottom line. REALTORS® are here to maximize your value, buying or selling. We work for you in your best interest, and I would love to be YOUR REALTOR®.