Lorraine Ryall
Sellers always have thought of the summer months to be the slowest time to sell homes in Arizona, and many will take their homes off the market in June, July and August, with new sellers waiting until the fall before they list their homes.
While it’s true the market slows down and sales start to dip in the summer months compared to the spring, there still are plenty of buyers out there, and the drop isn’t as significant as you might think.
Summer months’ sales are increasing, and we saw this trend really pick up last summer with one of our busiest summer seasons for the real estate market in Mesa. In 2017, the sales for March, April and May were 2706 combined and in June, July and August, the sales were 2469. Sales did decline in the summer, but it was only by 9.5 percent, as there still were plenty of buyers out there. While sales dropped by 9.5 percent, the inventory dropped by 17 percent, leaving less homes on the market for buyers to choose from.
The other advantage of selling in the summer months is this is when the serious buyers are out looking. The looky loos aren’t going to go window-shopping when it’s 115 degrees outside. The serious buyers want to find their homes as quickly as possible. To keep the process as short as possible, they will narrow their searches to only the homes at the top of their list, so you get less showings in the summer but more serious buyers.
Relocation Buyers
Phoenix is ranked one of the top cities for job growth and population growth, and we are seeing more and more people relocating from out of state, especially California and the East Coast. They are the buyers who are here in the midst of our summer heat trying to find a home to move the family to as soon as school is out, which isn’t until mid-June in other states.
Market at different price points
Home Price Under $350K
The inventory for homes under $350K is so low it’s hard for buyers to find them in time to get an offer in. In Mesa, there are 25 percent fewer homes on the market in this price range compared to the same time last year and 40 percent fewer than in 2016. If you do find one that is still active, you need to jump on it, view it right away, and be ready to write a very strong offer.
Chances are, when you do write an offer, you won’t be the only one. We are seeing a lot of multiple offers on homes in this price range, which is driving the prices even higher and, in many cases, above the asking price. With such low inventory and high demand, the summer will continue to be very strong for this price point. So, if you have been thinking about listing your home, you don’t have to wait for the fall.
Home Price $350K to $800K
Inventory in this price range is down 20 percent from the same time last year and 24 percent from 2016. As of May 19, the number of homes currently under contract is 374 compared to 276 in 2016 and 217 in 2016. Pending sales have increased 36 percent from the same time period last year and a whopping 72 percent from 2016. With less inventory and such strong sales, we expect the summer to continue with the increased momentum, especially as this is the price range in which most relocation buyers are purchasing.
Home price $800K+
This price range is the only one that is seeing an increase in active listings in Mesa of 17 percent over this time period in 2017 and 2016, but what is significant is the number of homes currently under contract. Pending sales as of May 19 have almost doubled from the same period last year. There currently are 21 homes under contract compared to 11 in 2016 and 13 in 2016. Finally, the luxury market has rebounded, and 2018 is proving to be the best year yet.
Less Competition in the Summer
With the theory being to take your home off the market during the summer months, the advantage to the seller who leaves his on the market is less competition. Less competition always works to the seller’s advantage, and the summer offers the seller the least competition.
As you can see from the statistics above, no matter what price range you are in, we are still in a strong seller’s market. With increasing buyers in the summer months and low inventory, keeping your home on the market or even listing in the summer could work to your advantage.
If you would like more information or statistics on the current market conditions in your price range, or you want information on listing your home, please don’t hesitate to contact me.
Lorraine Ryall has been a Multi-Million Dollar producer for the past nine years. You can reach Lorraine at (602) 571-6799. You also can send her an email at Lorraine@Homes2SellAZ.com, or visit her website at Homes2SellAZ.com.