Phoenix Real Estate Market Update – April 2018

Phoenix Real Estate Market Update  – April 2018


– Hey guys, Kristin Lavanway here. What? April already? How did that happen? The first quarter’s over with;
there’s only one thing to do. (vocalizes) Phoenix real estate market update. So where are we at? Well, big surprise, it
is a seller’s market. Yeah, it’s been a seller’s
market for a while, probably gonna be a seller’s
market for a while longer. Clearly, there are not
enough homes on the market. Right now we’re looking at 2.8% fewer listings than this time last year. I tell you folks, last year wasn’t exactly a cake walk, right? So this year is even harder for buyers. And single family homes are actually down 3.4% compared to last
year, so it’s pretty tough. Not quite as bad for townhomes. They’re only down 1.1%. Prices are going up, so a lot
of people are kinda looking at those townhomes as an option. There’s a lot of mobile
homes on the market, about 7% over last year, if
you’re into mobile homes. We did hit a record in
March: 3,000,000,000 in sale. We haven’t seen that kind
of sales volume since 2005. Not a bubble. 2005, not like now,
this is not speculation, this is people who just
want a place to live. We set another record for
the largest price tag. A property in DC Ranch
was originally listed for 24.5 million dollars, (exclamation) but a Canadian buyer snapped it up after only six years on the market. The property sold for
17.5 million dollars. Pricing is critical, sellers. But just to give you a little glimpse on how the other half lives, there was an $87,500
community fee due at closing. Those are some pretty hefty closing costs. For the rest of us slugging
it out in Average Joe Land, we’re looking at appreciation rates that are kinda high this year. Avondale is the highest: 9.3% annual appreciation rate, a little bit up from last
year when it was 9% last year. Avondale, really great prices in Avondale, so that’s a popular area. Some other hot spots: Queen Creek, they’re looking at 8.3% appreciation rate compared to 7.3 last
year, and Surprise at 7.8% up from 6.4% last year. So a couple areas are kinda slowing down. Maricopa, 8.3% compared to 10% last year. 8.3, not exactly something to sneeze at, but it is a little bit
slower than last year as far as price increases, and Buckeye, 7.7% compared to 9.8% last year. Chandler, 5% appreciation rate, down from 6.1% last year. Prices are just getting high in Chandler, so obviously that’s
gonna start leveling off. And Goodyear, another one
down about a percentage, down 5.8% compared to 6.8 last year. Overall, all the areas, you’re
kinda looking, major areas, you’re looking at annual
appreciation rates between five and seven
percent, which is high! We don’t know how long that’s
gonna be able to maintain before prices just reach the point where we start to see
some leveling off, right? The market’s always seeking equilibrium, so as the prices come up,
buyers are either gonna tap out or more sellers are gonna
put their homes on the market and increase the inventory,
which also will put the brakes on those price increases. Properties are selling, obviously. Our listing success rate of 84.3% is the highest we’ve seen since 2005, again, a very vigorous market back then, a very vigorous market now,
but for all the right reasons. If you wanna know how bad it can get, the listing success rate in
January of 2008, you know, crash-ville, was 20.8%. Ouch! Ouch! The hottest towns in the
Phoenix metro area right now are Avondale, Chandler, Gilbert, Mesa, and Glendale, all on fire. Not so hot cities:
Maricopa, Paradise Valley, and Cave Creek, although those
higher end luxury areas are seeing a bit of a pickup, so
it’s not exactly dead there. It’s just not as on fire
as some of the other areas. Are prices rising too fast? I mean, that’s a question
some people are asking. I hear a lot of people that
are like Chicken Little, ‘the sky is falling!’ (scream) ‘There’s gonna be some
sort of correction!’ Well, according to the Case-Shiller index, Phoenix right now is ranked 14th out of the top 20 metropolitan areas
in terms of price increases. According to the Case-Shiller, Phoenix prices are increasing at a rate of 5.9% year over year compared to the national average of 6.2%, so really that’s pretty
healthy compared to the insane areas like San Francisco, which is raising at 10.2%, Las Vegas, which is looking
at 11.1% on Case-Shiller, and Seattle, get outta here, 12.9% on prices that are already
pretty high if you ask me. So Phoenix is still
offering a really good value in terms of a metropolitan
area’s home sales prices. Not only are home prices going up, but interest rates are going up as well. We’ve seen interest
rates go up about 5/8 of a percentage point since
the beginning of the year. Yeah, which does make your payment higher. So if your strategy is
to kind of wait it out, just know that that $240,000
house you’re looking at right now is probably gonna be about a $257,000 house next year, and your loan interest
rate’s gonna be higher, so I’m not exactly sure what
you’re waiting for there. Just saying. One last thing I wanna touch
on: distressed properties. I’ve had a couple people
ask, ‘hey, I wanna buy a bank-owned property or
a short sale, you know? Snag a good deal.’ Well, good luck with that. There are a large number of zip codes in the metro Phoenix area right now that have zero bank-owned
properties or short sales. Zero! None! No distressed properties for sale. There’s a couple that have
maybe a few short sales, but zero bank-owned properties. Short sales are a little bit higher, but a lot of them are in areas that really weren’t
affected by the crash, so it’s kinda like the normal
number that we would see. All the other areas are actually below the number of foreclosures and
short sales we saw pre-crash. So in other words, things are
looking pretty darn healthy in Phoenix real estate right now. So there you have it,
that’s what’s going on in Phoenix real estate right now. Can’t wait to see what
Q2 2008 has in store. If you have any questions or comments, you know where to find me: [email protected], that’s where. Go out there and buy some sunscreen because it’s starting to heat up, if you know what I’m saying.

4 thoughts on “Phoenix Real Estate Market Update – April 2018

  1. And despite that (ouch!) 20% sell rate in 2008 you STILL were able to sell our home for us in just a few months time for a great price and find us a new fabulous home beating out multiple offers. You're a great agent Kristin! Even in the toughest markets!

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