Since 2013, the housing market has been turning around, slowly getting back to what we consider a normal market, with the drastic drop in short sales and foreclosures.
We didn’t see much of a move in 2014 with supply and demand staying almost equal throughout the year, and home prices increasing 8 percent. We carried that trend into this past January, with both supply and demand below normal levels but equally below, keeping us in a balanced market.
Since February, demand has continued to increase (up 14 percent from June last year), while supply has decreased (down 26.8 percent from June last year), causing a shift from a balanced market into a seller’s market, but not all price ranges are feeling the same summer sizzle.
The under $200K price range has seen a huge drop in supply, and the $200K to $400K price range has seen a huge spike in demand, making both these price points a sizzling market right now. The price range from $400K to $800K has increased, but not nearly as much. I didn’t break prices down any further as you get into the smaller volume, but the $400K to $600K has increased in both supply and demand equally, keeping it balanced from this time last year. The $600K to $800K and the $800K plus price range have both increased in supply, but the demand has increased even more, showing a stronger demand in these price ranges over this time last year.
In Arizona, summer is usually a slower time of the year for the real estate market. Buyers don’t want to go house hunting in the triple digits, and sellers prefer to go on family vacations or hang out by the pool rather than keep their home spic and span and ready to show. Sellers will take their homes off the market in June or July, and wait for the fall to relist them. However, our market is very different this summer, especially in the under $400K price range, and in today’s market conditions, listing now, instead of waiting, could give you a huge advantage.
Why This Summer Is a Good Time To List Your Home
It all comes down to that good old market indicator supply versus demand, and, as you can see by the numbers, supply is way below demand. Less supply equals less competition. Instead of your home competing with 15 other similar homes in your neighborhood, by listing now, while most sellers are waiting until the fall, you may be the only home in your neighborhood, or be one of only two or three similar homes.
Although having less competition may not always increase the value of your home, it certainly will increase your chances of selling your home faster and at a higher price. The longer your home sits on the market, the lower the offer prices become. Buyers will come in under your asking price when they see the home has been on the market for 30, 60 or 90 days.
We also are seeing multiple offers coming back again, especially in the under $300K price range. One new listing in our office, priced at $275K, had 14 offers within the first couple of days of being on the market. Who said the summer wasn’t a good time to list your home?
Why Buyers Are Ready To Buy
Buyers know the inventory is low, and supply and demand is unbalanced in the seller’s favor. Interest rates are increasing, along with home prices, so buyers are actively looking now and ready to purchase. They know there is no benefit to waiting. They are no longer sitting on the sidelines, waiting to see what the market is going to do.
There have been enough reports and statistical data showing we are moving back into a seller’s market, and prices are increasing. There are no signs or indicators showing these factors are going to be changing any time soon. Now is the time to buy, and buyers are ready.
If you are thinking about selling, and would like a free market analysis of your home, or would like more information on our market conditions, please don’t hesitate to contact me.
Lorraine Ryall is a Multi-Million Dollar producer and a recipient of the Coldwell Banker International President’s Circle Award. For more information, call (602) 571-6799, or visit her website at www.Homes2SellAZ.com.