Metro Phoenix Real Estate Trend - Under Contract Improvements

By
Real Estate Agent with HomeSmart Real Estate BR030809000 AZ Broker BR030809000

Metro Phoenix Real Estate Trends - Under Contract Improvements

The Under Contract factor in the Metro Phoenix Real Estate market is a great tool to determine not only the potential for the upcoming business, but also allows us to monitor exactly when the most impactful times on the market's overall improvements and what was going on during those times (holidays, different times of the year, major events or catastrophes, as examples) to figure out how to re-create or prepare to capitalize on the same events.  When the Real Estate market in the United States improves, we also see improvements in the economy and unemployment rates drop as there are more jobs in the processes (more business means more building, so construction typically increases; there are more people centralizing, so there are more grocery stores, convenience stores, restaurants, hotels - you get the picture).  The same is definitely true Arizona, and the Metro Phoenix area, more specifically.

The Under Contract - Weekly Average Listing Price per Square Foot found below chronicles the patterns that were experienced from the end of 2010 through  December 2013.  As is evident, there were more months of improvement than there were months of re-stabilization.  The market trends from 2013 reports noted throughout the year for most areas of the Metro Phoenix area saw significant improvements each month from the previous year.  This was great for everyone - as, the Real Estate market improves, there is some overlap that happens within the Valley of the Sun.  What this means is that usually a home that goes up for sale is compared to similar properties sold in the area based on size, amenities, age, location, etc.  As the market becomes more independent and stronger, there are more homes, which means that there are more comparables that can be used in pricing of the property, allowing the Seller to value their property higher and essentially get more from the property.

Under Contract - Weekly Average List Price per Sq Ft as of mid-January 2014


However, as you can also see in the chart above, that there has been a leveling off of the Weekly Average Listing of homes that are Under Contract.  This is an indicator that, although homes are still profitable and appreciating in value, there are becoming more and more homes on the market, which shifts the dynamic of the Rules of Suppy-and-Demand.  If there are more homes than there are Buyers, then the Buyer actually maintains the control of the transaction, as they have (in theory) many options and can dictate more of the terms of the final sale; whereas, if there are more Buyers on the market, then the Sellers have more of a final say (as, there are - in theory - not as many options).

Currently, we are experiencing a BUYER'S MARKET!  Now is the time to connect with your first DREAM HOME or possibly your next investment property.  The key to having the BEST experience is to go to the BEST agent - Anna "Banana" Kruchten.  Anna "Banana" has been helping connect Buyers to their DREAMS for over 20 years - and there is no sign of her slowing down now.  Just take a look at what her Clients have to say.

 

Metro Phoenix Real Estate Trends - Under Contract Improvements

 

Orginally posted at Phoenix Property Shoppe

Posted by

Comments (2)

Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Hey Anna, this is a comprehensive report and I'm sure those savvy buyers will be calling Anna Banana soon to take advantage of the market.

Jan 16, 2014 04:08 AM
Marshall Enterprises
Marshall Enterprises - Saint Michael, MN
Antiques, Lawn Care, and Trashouts

Boy, you lost me on this one.  But, I wanted to support you and tell you that I know you are the best broker in Phoenix, Anna Banana!

Jun 04, 2014 05:04 AM