August Market Report - Maricopa County

Here are your real estate statistics for last month.  Be sure to call if you have any questions about this report or about how the market is performing.  This report includes MLS data for the past 36 months for Maricopa County only as provided by the FlexMLS system.  Please note that MLS search results fluctuate as data is added to the system and the figures below were obtained on 9/3/2014.

Closed Sales Report Analysis:


The month of August saw a 5.2 percent decrease in the number of closed sales compared to the prior month.  The statistics show that we had 5,782 residential properties sell in August in Maricopa County compared to 6,101 in the month of July.  This compares to 6,260 closed sales in August of last year, so we are definitely seeing a decrease in sale activity.  In today’s market sellers need to continue to be diligent in pricing and staging their homes, as we are no longer in a seller’s market.  The traditional/balanced market means a level playing field for both buyers AND sellers. 


In our shifted market, buyers are continuing to buy – they want to take advantage of this amazing market due to low interest rates, increased inventory, and more traditional sales from which to choose.  The traditional market that we are in now means that there is balance from both the buyer and seller side.


Average Sales Price Analysis:


Last month saw the average sales price decreased from $257,719 in July to $257,055 in August, a decrease of 0.26 percent.   With the shift and leveling off in other numbers, sellers need to pay attention more than ever, as we are seeing prices drop,  homes remaining on the market for a longer period of time, and fewer homes moving to pending status.  In some price ranges and in some locations, sellers are offering incentives to buyers and real estate professionals to ensure that their home is selling.  Sellers who are serious about selling need to ensure that their home is one of the best-priced homes in their local market in order to attract qualified buyers.


This statistic is an indicator that buyers have a small amount of relief when it comes to the average sales price.  Educated and savvy buyers understand that a competitive market gives them fewer options for home choices – even when inventory increases.  Although this may vary from area to area and from price range to price range, buyers need to make sure they are fully informed regarding the specific market in which they have an interest.  This will give them the best chance of being competitive when making an offer.


Active Listings Analysis:


For the sixth month in a row, we saw inventory decrease when compared to the prior month.  We have a total of 18,975 residential properties actively listed in Maricopa County as of 9/3/14.  Sellers need to continue to watch this trend as we begin to see more competition for getting a home sold – we saw our low in this area in May of 2012 when we only had 9,785 active listings – a number significantly lower than our current market.  This shift will impact the price of a home, how quickly it sells, and the terms a buyer is seeking when purchasing a home.


The current market means that buyers had 645 fewer homes to consider this past month.  Continue to monitor this statistic, as it will be the statistic that indicates how many options you will have in your home search and how quickly you will need to act…the lower the number, the more likely the competitiveness for lower priced homes will remain part of the current market.  As always, market activity is local and should be researched with your real estate professional to determine the activity and desirability of the homes that are of interest to you.

Average Days on Market Analysis:


This is a very important statistic for sellers to monitor.  Last month saw the average days on market increase to 84 days.  One year ago, we were at 56 days.  This does not follow the pattern of the prior two years, so it is very important for sellers to monitor this statistic.  The longer a home is on the market, the more costly it is to sellers, as they continue to pay mortgage payments and all of the other fees associated with home ownership.


Inventory continues to increase, providing buyers with more choices.  However, buyers need to be aware that competition for great homes continues to remain high.  Great homes will draw great buyers regardless of the real estate market we are experiencing.  The importance of having a reliable lender AND real estate professional to guide you through this process has never been more important.


As a reminder, you need to meet with a real estate professional to see how statistics impact the area where you are considering selling or buying.  Blended statistics will not be as accurate as a more detailed report that your real estate professional can provide to help you with your decision making.

Would you like to know what is happening in your neighborhood? 

Would you like to know the value of your home?

Do you need help deciding whether to sell or not or would you like to know if now is the right time to buy?

We would be very happy to get you that information!
John and Marta Baxter