Phoenix Real Estate Market Update For January 2016

Phoenix Real Estate Market Update For January 2016

Happy New Year!  From where we sit, the Phoenix real estate market looks pretty dang good!  At the end of 2015, we saw a slight slow down in November largely due to some changes with lending guidelines and rules and then a huge uptick in sales in December.  The buzz in the market has continued through the holidays and into the New Year.  Our team has been extremely busy with new buyers, contracts and listings coming on the market.  Don't wait to get into the market, now is as good a time as any!

Here's the market by the numbers:

We have 20,868 active homes on the market. Our "norm" is somewhere in the 30,000 - 35,000 range of active properties. We are still low which indicates a large demand, especially for properties under $600,000.  80% of the Phoenix-area market is a traditional single family home meaning a non-distressed property.  The distressed market is back to a healthy number at around 5% of the whole market which is great news! There is a large portion of the population who are still going to find themselves under water and these people have been lucky enough to keep afloat over the past 6 years and ride out the storm.  Hopefully as values continue to rise, they won't have to wait too much longer to sell if they so desire.

Price RangeActive Single FamilySold in December 2015Months Supply of Homes
< $150,00011987451.6 months (seller's market)
$150,000 - $300,000632431982 months (seller's market)
$300,000 - $500,000447611244 months (balanced market)
$500,000 - $600,00010311673.2 months    (seller's market)
$600,000 - $800,00011141477.6 months (buyer's market)
$800,000 - $1,000,0007345613 months (buyer's market)
$1,000,000<17389718 months (buyer's market)

With the federal funds rate increasing for the first time since 2006, we did expect to see a bit of a stall in the market which hasn't happened. The real estate market has remained strong through the change. The rate was increased from 0% to 0.25% changing the prime rate from 3.25% to 3.5% with another increase expected later this year.  

Year End Review for the Maricopa & Pinal Counties - Residential Real Estate:

Total closings in 2015: 84,181 Homes Sold

Average List Price: $340,567 (up 7.6% from 2014)

Average Sold Price: $262,689 (up 5.4% from 2014)

We saw a 60% success rate in inventory meaning that 60% of the homes on the market sold last year.  

Thinking this is the year for you to sell your Phoenix house?  Request your free valuation online here:

Want to see homes currently on the market in the Phoenix area?

Click here for all the results

Chelsea Anderson Headshot
Phone: 602-748-6136
Dated: January 13th 2016
Views: 503
About Chelsea: Chelsea joined the real estate community in 2010 as the Marketing Director for a small local commerc...

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