SUPPLY
| Phoenix Metro Area MLS Resale Supply | September 2014 | September 2015 | % Change |
| Under $200,000 | 7,889 | 4,696 | -40.4% |
| $200,000 – $300,000 | 5,053 | 4,264 | -15.6% |
| $300,000 – $500,000 | 4,988 | 4,903 | -1.7% |
| $500,000 – $1M | 2,454 | 2,632 | +7.2% |
| Over $1M | 1,271 | 1,289 | +1.4% |
| Phoenix Metro Area MLS Sales | August 2014 | August 2015 | % Change |
| Under $200,000 | 3,185 | 3,207 | +0.7% |
| $200,000 – $300,000 | 1,626 | 2,021 | +24.3% |
| $300,000 – $500,000 | 1,066 | 1,202 | +12.8% |
| $500,000 – $1M | 364 | 389 | +6.9% |
| Over $1M | 68 | 90 | +32.4% |
The Phoenix Metro real estate market is continuing to recover across all market indicators.
Sellers are at a distinct advantage, especially if their property is under $200,000, as there is very little competing supply. Sellers in this price range have 40 percent fewer competitors than they did last year at this time. Lack of property to buy under $200,000 has pushed many buyers into the $200,000 to $300,000 range, causing active supply here to decline nearly 16 percent since September of last year.
Buyers looking over $300,000 have more from which to choose in comparison. Inventory levels between $300,000 and $500,000 and over $1 million have seen little change from last year. Listings between $500,000 and $1 million are up 7.2 percent.
| Phoenix Metro Area Days on Market | August 2014 | August 2015 | % Change |
| Under $200,000 | 79 | 59 | -20 Days |
| $200,000 – $300,000 | 81 | 67 | -14 Days |
| $300,000 – $500,000 | 103 | 96 | -7 Days |
| $500,000 – $1M | 116 | 129 | +13 Days |
| Over $1M | 208 | 218 | +10 Days |
| Phoenix Metro Area 12-Month Avg. Sales Price/SF | August 2014 | August 2015 | % Change |
| Under $200,000 | $89.01 | $93.66 | +5.2% |
| $200,000 – $300,000 | $119.74 | $122.17 | +2.0% |
| $300,000 – $500,000 | $142.91 | $144.75 | +1.3% |
| $500,000 – $1M | $193.07 | $195.74 | +1.4% |
| Over $1M | $321.39 | $331.85 | +3.3% |
SALES
The lack of inventory under $200,000 is restricting any significant growth in sales within that price range. With only 4,696 listings available for sale this month, and 3,207 sales last August, it’s an extremely hot market. It’s a frenzy for those buyers looking for single-family homes in this range, as opposed to condominiums and townhomes. Conversely, the $200K to $300K price point saw a 24.3 percent increase in monthly sales. In fact, all price points saw improvements in sales volume last month compared to last year.
DAYS ON MARKET
Sellers listed under $500,000 saw faster selling times compared to last year. Days on Market counts the number of days from the time a listing is placed in active status to when it is placed in pending status.
Listings sold under $200,000 went pending nearly three weeks earlier, while those closing between $200K and $300K saved an average of two weeks in marketing time. Even those closing between $300K and $500K saved a week in marketing time. This measure only considers successfully closed transactions. It does not include those listings still active, cancelled or expired.
APPRECIATION
With the abundance of good news for sellers in the marketplace, some professionals have wondered why appreciation hasn’t been as steep as it was in past seller markets, such as 2012 and 2013, when 20 percent to 30 percent was common. One reason is there are far fewer cash buyers in the marketplace.
Cash buyers care less about appraisals than those who are taking out a loan. There are fewer buyers today who can cover the gap if the appraisal doesn’t meet the contract price, which keeps sellers from pricing too high.
The $300K to $500K market has more competition from new construction in general, especially in the Northwest Valley and Southeast Valley. The added new home supply in this price range and area keeps prices competitive in the resale market.
For additional information, call Ron Brown at (602) 618-9512, or visit the website at TrailsAndPaths.com. Coldwell Banker Trails and Paths, serving the East Valley for the past 16 years, is located in The Village at Las Sendas, at the northeast corner of Power and McDowell roads.