Have you ever wondered if it’s a good idea to buy or sell a home during the holidays? In Phoenix, it’s rarely a bad time to buy or sell! We don’t have five feet of snow to deal with, and you don’t need to shovel sunshine!
During the holidays, there are fewer homes on the market and fewer buyers out shopping. This means that the buyers will be more serious about their home search, and are more likely to submit an offer.
According to Tina Tamboer, Senior Real Estate Analyst with the Cromford Report, there are currently 1399 normal (not a short sale or foreclosure) single family listings between $100-$200k in Greater Phoenix, and supply levels are not expected to rise in this price range going into 2018. In the last half of 2017, an average of 1396 normal single family new listings were added each month, while 1375 per month were sold in this price range. In November, 23% sold over list price compared to 27% last June, and 28% closed with full price offers, which is unchanged from June.
The overall appreciation rate based on annual sales price per square foot in Greater Phoenix is 6.2%. However, supply and demand are not the same by price range. The greatest appreciation rates are under $200k due to a lack of new construction that would typically balance out the supply shortage. Sales under $200k are 33% of all sales this year, so their rate has a large effect on the overall average. New multi-family and single family homes are being added to the $200k-$500k price range to accommodate increased demand, but it’s still not quite enough. The market is balanced between $500k-$1M, while supply is still higher than demand over $1M despite a 10% rise in 4th quarter contracts. As a result, appreciation rates are as follows by price range:
* Under $200k: 7.7%
* $200k-$500k: 3.5%
* $500k-$1M: 1.7%
* Over $1M: 0.1%
January is traditionally the biggest listing month of the year, so if you are planning to buy, you may have more choices in the new year, but you will also have more buyers potentially competing for the same home. If you are a seller, you might want to get a jump start by getting your home on the market before January 1st!