September Market Report - Maricopa County

Here are your real estate statistics for last month.  Be sure to call if you have any questions about this report or about how the market is performing.  This report includes MLS data for the past 36 months for Maricopa County only as provided by the FlexMLS system.  Please note that MLS search results fluctuate as data is added to the system and the figures below were obtained on 10/5/2014.
 

Sellers:

The month of September saw a 3.06 percent decrease in the number of closed sales compared to the prior month.  It is interesting to note that the number of closed sales in September in the past 3 years is nearly identical!  Last month’s numbers showed that we had 5,605 residential properties sell in Maricopa County compared to 5,782 in the month of August.  For sellers, this decline means that fewer homes are selling.  As a result, sellers need to continually monitor their local market to make sure they are pricing and staging their homes to attract the best buyers.

Buyers:

Buyers remain very active in today’s market. However, we are seeing fewer sales this past month.  This could be due to the seasonal shift or it could also be influenced by sellers and buyers not agreeing to the terms of a sale such as inspection repair items, or having an unacceptable appraisal. 

Sellers:

The average sales price decreased slightly from $257,055 in August to $255,518 in September, a decrease of 0.60 percent.   This is the third month in a row that we have seen a drop in the average sale price.  With the shift and leveling off in other numbers, sellers need to pay attention more than ever, as we are seeing prices drop,  homes remaining on the market for a longer period of time, and fewer homes moving to pending status.  In some price ranges and in some locations, sellers are offering incentives to buyers and real estate professionals to ensure that their home is selling.  Sellers who are serious about selling need to ensure that their home is one of the best-priced homes in their local market in order to attract qualified buyers.

Buyers:

This statistic is an indicator that buyers have a small amount of relief when it comes to the average sales price. This is the lowest average sales price since February of this year.  Educated and savvy buyers are taking advantage of these small shifts in the market, especially in light of recent interest rate increases.  Although this may vary from area to area and from price range to price range, buyers need to make sure they are fully informed regarding the specific market in which they have an interest.  This will give them the best chance of being competitive when making an offer.
 

Sellers:

The month of September saw the number of homes in pending status drop from 4,472 homes to 4,168, a 6.8% decrease over the previous month.  It is very important for sellers to continue to monitor this statistic, as it is a strong indicator of the number of buyers and sellers that were able to come to agreement on the terms of a contract on a home.  It will also impact the number of closed sales in the months to come.

Buyers:

Buyers should review this statistic, as it indicates how many buyers and sellers came to agreement on the sales price and terms of a home sale.  Although this may vary from area to area and from price range to price range, buyers need to make sure they are fully informed regarding the individual market in which they have an interest.  This will give them the best chance of being competitive in the search for a home.  Buyers should also make sure they are working with a lender who is knowledgeable about the latest lending trends and options. 

Months of Inventory Analysis:
 

Sellers:

September numbers showed the months of inventory increased slightly to 3.51 months – a number that has been increasing now for the past five months.  This is the highest number we have seen since March of this year.  This statistic indicates that we have settled very comfortably into a “traditional” or “balanced” market.  This will be important to monitor, as an increase in the months of inventory point towards more homes competing for buyers and more homes staying on the market.  Sellers who want to sell need to ensure that the home price is attractive to buyers with the shift in the market. 

Buyers:

Buyer will want to monitor this as well, as it indicates how quickly homes are selling when they come on the market.  This past month showed an increase to 3.51 months of inventory – much better than the 1.29 months we had a couple of years ago.  This has the result of giving buyers more “buying power” than in the past several months.