We still are in a strong seller’s market, with inventory levels continuing to decline.
In the Phoenix metro area, supply has decreased from 2.1 to 1.9 months of supply year over year for July, which is a decrease of 9.5 percent. However, in Mesa, the decrease is far more significant.
In July 2016, there were 1.7 months of supply compared to July 2017 of 1.3 months of supply, which is a decrease of 23.5 percent. To put it in perspective, a balanced market for Mesa would be two to three months of supply.
Demand has dropped very slightly, down 3.1 percent, but with supply down 23.5 percent, the spread is continuing to widen. As you can see from the statistics and charts below, active listings are lower year over year, while pending sales and monthly sales are increasing. The median sales price in the greater Phoenix area is forecast to decrease slightly over the next couple of months as we head into the fall season, but everything is driven by supply and demand. With lower inventory levels in Mesa, the median sales price should remain steady rather than decrease in the next couple of months.
Mortgage Rates
Mortgage rates haven’t increased as much as everyone expected and are approximately .25 percent higher than this time last year. The FHA and VA 30-year fixed-rate mortgage is in the high 3’s, and the conventional 30-year fixed-rate mortgage is in the low 4’s. Now is a great time to purchase and lock in these low rates whether you are a first-time homebuyer or purchasing your next home.
Mesa Market
| July 2016 | July 2017 | Change | |
| Active Listings | 1424 | 1158 | -18.68% |
| Pending Sales | 959 | 988 | 3.02% |
| Monthly Sales July | 740 | 780 | 5.41% |
| Days on Market | 66.1 | 57.3 | -13.31% |
| Months of Supply | 1.7 | 1.3 | -23.53% |
| Median Price | $234,000 | $254,900 | 8.93% |
If you are planning on purchasing a home in the near future, now is a great time to buy, as prices are continuing to increase, while supply is continuing to decrease. If you are thinking of selling, listing your home while there is little inventory means less competition and a strong seller’s market.
For more information on buying or selling a home in today’s market, please contact me directly for a free market analysis.
Lorraine Ryall has been a Multi-Million Dollar producer for the past nine years. If you are thinking of buying or selling and would like more information or a market analysis, please contact her at Lorraine@Homes2SellAZ.com, or call (602) 571-6799. Visit her website at Homes2SellAZ.com.