Phoenix and East Valley AZ Home Prices
and Statistics for February 2019
Real estate market data for Phoenix, AZ and the East Valley provided by Troy Erickson Realtor of Good Company Real Estate
The February Phoenix and East Valley housing market report continues to show a slowing in the overall housing market, which is a little surprising considering how interest rates are dropping.
Median Sold Price
Sales prices continue to be the one good sign in the Phoenix and East Valley housing market. The median sales price continues to increase, and was $264,900 for February. This is a 1.0% increase from the median January sold price of $262,368, but is a 5.1% increase from the median sales price of $249,945 from February of 2018. This is the third month in a row sold prices have increased, and the highest median sold price since July of 2018. Sold prices typically increase from January to June, so this is not surprising. However, the price increase from January to February this year is less than the price increase from January to February of last year, and this may be a sign that although prices may continue to increase through 2019, it may be at a slower pace than in the previous four years.
Number of Homes Sold
February was only the second month over the last nine months that the Phoenix Metro and East Valley housing market has see an increase in the number of homes sold. However, part of the reason for the increase was because of low number of homes sold in January (5,342). The 6,360 homes sold in February was an increase of 1,018 (19.1%) from January, but was a decrease of 508 (-17.4%) from February of 2018. Last year saw an increase of almost 2,500 homes sold between February and March, so next month should tell us a lot about how the 2019 housing market will be. So far it looks like a slow start to the 2019 Phoenix Metro and East Valley housing market, continuing the slowing trend that took place over the last half of 2018.
Days on Market
The number of days on market (DOM) for February has increased to 72. The DOM has been consistently increasing since a low of 59 last October, but is slightly lower than it was in February of 2018 when it was at 73. Days on market typically start to decrease in February, as home sales start to pick up during the Spring. As I stated last month, with the DOM continuing to increase in February, this may be an indication that the housing market is slowing. Overall, this is still a low number for DOM, which means homes in Metro Phoenix and the East Valley are selling slightly faster than they would be in a normal market.
Number of Active Listings
The total number of active listings decreased from 17,725 in January to 17,571 in February, which is a decrease of 154 active listings. This is still significantly higher than the 15,685 active listings we had in February of 2018. This is also 1,438 fewer listings than the 5-year average (19,009) for this time of year. The Phoenix Metro and East Valley market still has a lower than normal inventory of homes for sale, and even though we saw a slight drop this month (we saw a drop in February of 2018 as well), the number of active listings seems to be on the rise. As long as inventory remains low, home values and demand will remain high.
Number of New Listings
After almost doubling from December to January, the number of new listings decreased 1,264 (or 12.3%), to 9,013 in February. This is also 3.7% less than February of last year. After seeing January jump so high, it is unfortunate to see February drop so low. However, the number of new listings also dropped last year between January and February, just not as much. March of 2018 saw the highest number of new listings in one month (10,937), so it will be interesting to see if we will see that same thing this March.
Number of New Contracts
The number of new contracts increased for the second straight month, up to 9,364. Although this was an increase of 572 (or 6.5%) from January, it was a decrease of 596 (or 6.0%) from February of 2018. March of 2018 also saw an increase in the number of new contracts before we saw the next eight out of nine months have a decrease in the number of new contracts. Next month should tell us a lot about how sales will be for 2019 in Phoenix and the East Valley, but so far it looks like we are going to have a slightly slower market than we did in 2018.
Average Sold to Original List Price Ratio
The average sold price to original list price increased to 96.6%, after decreasing or remaining the same for the last six months. The ratio sitting at 96.6% is slightly less than in February of 2018, when it was at 96.8%. An increase in the sold to list price ratio is what we would expect this time of year, and it should continue to increase throughout the Spring and into the Summer. With the inventory of homes for sale remaining lower than average, there is still a large demand for homes, and the Phoenix Metro and East Valley housing market is still a sellers market, even though it seems to be heading towards a more normal market.
With the number of Phoenix Metro and East Valley listings decreasing, and the number of homes being sold each month averaging less than last year, this may be a sign that the sellers market we have seen over the last four years is slowly starting to shift. However, home values are still projected to continue to increase, just at a slower pace in 2019 than in previous years, while interest rates have surprisingly decreased so far this year.
Having a good real estate agent who understands the housing market is a must. Homes in the Phoenix Metro and East Valley area are still selling in just over a month from when they first hit the market. You need an agent that can provide you an accurate list of homes for sale as soon as they are listed, as well as an agent that can help negotiate a great deal, and ensure that your transaction closes.
I have additional market reports and statistics included on my website, and you can find this information by clicking the following link, Arizona Multiple Listing Service Market Stats and Reports.
Phoenix and East Valley Real Estate Report Summary
The average sold price in February for Metro Phoenix and East Valley homes is $328,580. The average sales price has increased by 6.36% from February of 2018.
The median sold price in February for Metro Phoenix and East Valley homes is $264,900. The median sales price has increased by 5.1% from February of the previous year.
The number of new purchase contracts in February increased to 9,364, which is 6.5% greater than January (8,792), but a 6.0% decrease from February of 2018 (9,960).
The number of active listings for February is at 17,571.
The average Days on Market is 72.
Find Homes For Sale in Phoenix and the East Valley
Visit my website to search homes for sale in Phoenix, and the East Valley cities of Chandler,Tempe, Gilbert, Ahwatukee, and Mesa, or to be notified when homes in Phoenix and the East Valley come on the market and are listed for sale.
Feel free to email me, call/text me at 602-295-6807 if you would like additional information, or have any questions about the Phoenix and East Valley housing market. I will be happy to help in any way possible.
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