The Phoenix Real Estate Market still a Seller’s Market in July 2014

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Real Estate Agent with Russ Lyon Sotheby's International Realty AZDRE# BR642230000

The Phoenix Real Estate Market is still a seller's market. Even though we are still in a seller's market, it is almost at the borderline and inching towards to a neutral/balanced market.

This is based on the residential real estate statistics for just the City of Phoenix in Arizona, compiled by the Arizona Regional MLS.

Why is the Phoenix Real Estate Market still a Seller's Market?

As of July 14, 2014, the city of Phoenix had an absorption rate of 3.47. This rate means that the city has only 3.47 months supply of residential inventory.

Taking the rate at which people are buying homes in the city of Phoenix for the past year, if no new homes come up for sale again, the current number of homes available to sell will be sold out completely in about 3.47 months.

    Absorption rate for Phoenix Real Estate Market as of July 2014

The absorption rate usually determines if we are in a seller's market or a buyer's market. The higher the rate, the more homes available for sale in Phoenix hence a buyer's market because it favors the buyer who has lots of houses to choose from before buying.

The lower the rate the less homes available for sale, so using the demand and supply concept, the sellers have more negotiating power during a transaction making it a seller's market.  

If we are still in a Seller's Market in Phoenix, why are homes taking longer to sell?

Even though we are in technically still in a seller's market, we are almost on the higher end of the absorption rate range considered to be the sellers range, which is about 4%. 5% to 7% is usually considered a balanced market and 8% and above is a buyer's market.

Back in August 2013, 12 months ago, we had only 2.45 months supply of homes for sale and homes in Phoenix were taking about 51 days to sell, last month the average was about 80 days.

Average number of days it took to sell homes in Phoenix as of July 2014

Homes are taking much longer to sell now because we have more inventory than we did a year ago and we are slowing inching towards a balanced market, if we continue increasing our inventory as we are doing.

Does it mean I can get whatever I want for my house if I am selling it?

 

A year ago with a lower supply, buyers had fewer choices but with continuous increase in inventory, buyers have more options so as a seller, you have to expect to get what your home is worth to a buyer based what is available in your neighborhood.

A real estate agent will be able to advice you on how best to price your home so it sells quickly. This article/blog post is to educate you on the current trends in The Phoenix Real Estate Market, not to predict upcoming or future trends.

 

The post Phoenix Real Estate Market still a Seller’s Market in July 2014 appeared first on Phoenix Homes and Condos, Buying, Selling or Investing In Real Estate in Phoenix, AZ USA authored by Dorette Oppong-Takyi

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This post was authored by Dorette Oppong-Takyi, a Phoenix Real Estate Consultant and Agent serving Ahwatukee, Phoenix, Tempe, Chandler, Gilbert, Mesa and Surrounding Areas

She can be reached on 480-442-0779, With her team, Dorette is able to ensure her clients have as smooth a transaction as possible

Want an idea of how much your home will sell in todays market?
Send Dorette your name, address of your property and email address to receive a report prepared exclusively for you including pictures of sold, pending and active homes

Get Information on Phoenix Real Estate Market Updates here








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John McCormack
Albuquerque Homes Realty * www.AlbuquerqueHomes.com - Albuquerque, NM
AlbuquerqueHomes.com, Albuquerque Homes Realty

Good morning Dorette.  You have provided excellent information for both buyers and sellers on the Phoenix Real Estate Market.  Anyone looking for a REALTOR® would be wise to contact you. 

Aug 18, 2014 02:49 AM #1
Rainmaker
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Dorette Oppong-Takyi
Russ Lyon Sotheby's International Realty - Scottsdale, AZ
The perfect home is a means of self-expression

Thank you John.

Hope the real estate market in Alberquerque, New Mexico is doing great and sales are going smooth and steady.

Aug 18, 2014 02:51 AM #2
Rainmaker
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Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

I noticed you haven't posted on Active Rain for a while and was wondering if all is OK?  Come back to the 'Rain!

Nov 02, 2015 11:09 AM #3
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The perfect home is a means of self-expression
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