What is the housing market doing?
The quick video is great for a fast look at what is going on but lets take a more in depth look at what the Arizona residential real estate market is doing. (see KEY A) The chart below gives us some very valuable data about the phoenix housing market. It shows us in detail what the absorption rates for the housing market are by specific price range. We also can look at the Pending ratios to show us the expected market growth and movement. In this discussion we will focus on the 3 most popular price ranges. $200k – $249k / $250k – $300k / and $300k – $400k. These 3 price ranges are where the most homes are sold and the most homes are listed. If you are a home buyer it is very likely you will be in this price range. This information should help educate you on what to expect when making an offer. Most home buyers like to get deals on their home purchase. Now you will know what kind of discount to expect.
Price Range Number 1 ($200k – $249k)
There are currently 2,613 homes that are listed for sale between the price range of $200k – $249k. There are currently 867 homes that have accepted an offer and are now pending. If we take 867 pending homes and divide it by 2,613 active listings we get a 33.2% Pending ratio. Meaning of the homes listed right now, only 33.2% of those homes are likely to get an offer. For every 3 homes that are listed 1 home has a chance of getting an offer on it.
The average list price for this price range of homes for sale is $225,714 and the average sales price is only $220,723. That means on average, home sellers are getting 97.8% of their list price. This translates to seller’s losing $5,000 on the sale price and very likely they lose another $5,000 with assisting a buyer with closing costs. Meaning home sellers are losing on average about $10,000 from where they list their home with the suggestions of real estate agent, to when they sell their home to a new buyer. Part of this may be due to the supply vs demand for the price range of homes (see key #2 below) There currently is a 3.4 month supply of homes and the average days on market is 64. Hiring the wrong agent can cost you Thou$and$.
Price Range Number 2 ($250k – $300k)
As we climb in price we see a the numbers drop slightly more. A reason for this is usually as we get in the higher price range home buyers are more educated as they have been through the process, their families are growing and they are more fiscally responsible and more selective in the home they want. There are currently 2,212 active single family homes for sale in this price range in Maricopa County and 633 pending single family homes. This gives us a 28.6% pending ratio. This means out of every 3 to 4 homes listed 1 will get an offer each month. The average list price is $275,381 and the average sales price is $268,970. That is 97.7% sales price : list price.
What I also want you to look at on “Key A” is the number of Expired homes for the last 12 months since today August 20th 2014. This price range had 1,045 single family homes never got an offer and expired. This is a top 3 price range for selling a home and 87 homes each month on average expire from active status. Of the current active homes in this price range 2,212, 4% are going to expire without an offer based on the averages.
Price Range Number 3 ($300k – $400k)
This is the price range that is key for move up home buyer’s. Home owner’s usually have purchased a home when they were younger and over time have either gotten married, had children or advanced it career. They are now ready for a larger home . If you have another home to sell or rent out and keep as a long term investment, it is important to talk with a professional real estate agent and get the facts and details for what is best for your situation, lifestyle and goals. As a professional, I have a vast knowledge of both residential resale and rental markets. I can help guide you down the path you feel is best for you.
It’s time to look at the numbers. In this price range we have a larger gap of $100,000. There are currently 3,209 homes listed for sale and 672 pending properties. That is a 20.9% pending ratio or 1 out of 5 homes listed is likely to get an offer. There is a 5.4 month supply (see key B) , meaning the supply and demand is more in the favor of the buyer. That is why we see a $9,000 difference in average sales price to average list price. The average list price is $348,025 and the average sales price is $339,004 and homes sit on the market on average 76 days.
(Key B) How to Price Your Home
0-2 Months Inventory-Price with the Market to 10% above Market
3-4 Months Inventory-Price Aggressively with the Market
5-6 Months Inventory-Price with the Market to 5% below Market
7-12 Months Inventory-Price 10% below Market
12+ Months Inventory-Price 10% + Below Market
For more information about your home and its value please contact me for a Free Market analysis on your home today.
Thank you for reading about Low Down Payments For Homes For Sale in Gilbert AZ 85044.
Provided courtesy of the Bradley Potter, PLLC Home Selling Team
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