Crystal Ball Predictions remind me of that old Phoenix saying - But it's a dry heat. With that said we Phoenicians like to 'tell' ourselves that 110 degrees in the summer isn't so bad. And that's the exactly the way I see Crystal Ball Predictions they aren't that bad. Or are we just fooling ourselves? Time will tell.
Let's take a look back at the 2016 Real Estate as compared to 2015. And the numbers are not bad. In fact it's been a pretty good year overall. Sales are up 7% overall. 79.9% of sales were under $300K up 3.4%. 19.6% of sales were between $300 K to $500K up 20.2%. Closed sales up to $500k equaled 92.6% of all homes sold! 6.1% of sales were between $500K and $1M (up 15.4%). 1.4% of sales were over $1M (up 8.1%).
So what is my take on all these numbers?
Let's begin with the under $300K market. These homes flew off the market and most had multiple bids. The home sellers were happy as their home values appreciated nicely and they finally were able to recoup their losses. The home buyers, not so happy because they knew that submitting low ball offers wasn't going to work. In fact most of the listings sold for over list price if it was priced correctly and in good condition. So what do I see for 2017 for the under $300K home buyers and home sellers? Well, it's going to get a little tighter because they're aren't as many listings and the buyer pool is getting larger. Many buyers have improved their credit scores after the foreclosure and short sale crisis and they're ready to buy again. And with FHA loan limits increasing and MIP fees going down it's loosened up the lending rules and that leads to more buyers in the market, ready to find their dream home. Now keep in mind interest rates are expected to rise and that could effect some buyers buying power, but I don't think rates will go up a lot - so don't worry about it.
Now let's take a look at the over $500K market segment. The good news is that overall sales went up 15.4%. But then many home owners noticed their neighbors homes selling for what seemed like a good price and that a lot of buyers were buying. So what did the home sellers do? They decided to put their homes on the market too. Can you see the picture? The listing supply went up but they're weren't enough buyers buying so prices had to drop back down. Combine that with new homes being built and that added to a lot of competition for sellers. So what do I see in 2017 for the over $500K home buyers and sellers? It's probably going to look pretty much like 2016 with a slight uptick in price and listings. Home buyers will have plenty of homes to chose from and find some room for negotiation on price and terms. Home sellers will need to price their homes correctly, prepare them properly for sale and hire a professional agent that understands how to market their home online.
By now, I'm guessing your head is spinning with all these numbers so I'm going to include a info-graphic to make it much easier to see what happened in the Phoenix Metro Real Estate Market in from January 2016 to January 2017.
Chart courtesty of Cromford Associates & Tamboer Consulting
If you are thinking of buying or selling a Phoenix Area home in 2017 be sure to give me a call and we'll create a plan of action to make that happen - smoothly. I understand and know the Phoenix Area Real Estate Market. I'm also really good at Internet marketing. I always hire professional photographers which is extremely important in order to present your home online in the best possible light.
I promise to leave my crystal ball at the office and present only the facts! Many of our clients have been with us for years and years and they rely on our expertise & professionalism. And they also enjoy our friendly and down to earth way of doing business. We look forward to assisting you with your real estate wants and needs in 2017!
Phoenix Real Estate - Crystal Ball 2017 Predictions
Comments(6)