Market Report Jan 2013

7/29/2019 Market Report Jan 2013

1/27

Monthly Market Watch

for Maricopa CountyAn overview of what is happening

in the Maricopa County real estate market

Provided by Keller Williams Realty Professional Partners Statistics from JANUARY 2013 MLS

$29.95


2/27

Provided by Keller Williams Realty Professional PartnersStatistics from JANUARY 2013 MLS

Report overview

:

This report includes MLS data for thepast 36 months in Maricopa County only

as provided by the FlexMLS system.

Please note that searches fluctuate daily when running these reports;these figures were obtained on 2/3/13.

A reminder that you need to meet with a real estate professionalto 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 provideto help you with your decision making.


3/27


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4/27


Closed Sales Report Analysis

:Sellers:

As is typical in the month of January, we saw a decrease in the number of closed salesfor the month. January saw inventory drop 17.6% over the month of December.

The statistics show that we had 5,173 residential homes sell in the month of Januaryin Maricopa County. This is by far the lowest number of sales

in the 3-year reporting period.

Buyers:For buyers, this mean that the shortage of inventory is beginning to dramatically the

number of homes closing. Buyers should continue to carefully work with their real estateprofessional to understand the market AND how they can be competitive with themarket demand and other buyers who may be in a financial position that is more

appealing to the seller.


5/27


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6/27


Distressed Sales Analysis

:A bank owned/foreclosure home is one that the seller no longer owns

it has been taken over by the lender(s) who had a note on the home.Short sales are homes where the seller is negotiating with the bank

to forgive a portion of the debt in order to avoid foreclosure.

The market continues to shift, as we saw 67% of salesin the month of January classified as non-distressed sales.

Bank-owned sales saw an increase from 12% to 15%,and short sales dropped from 26.9% to 18%. Sellers and buyers

need to monitor this trend to see how the market continues to respondto the current inventory.


7/27


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8/27


Pending Sales Analysis:Sellers:

Pending sales in January increased by an impressive 30% over the month of Decemberfor a total of 5,954 homes moving to under contract or pending status. Sellers shouldcontinue to monitor these numbers to determine what type of activity there should be

on their homes as we move into the late winter and early spring months.

Buyers:This stat is an indicator that buyer activity continues to remain very high this is normalmarket activity for the month of January. Educated and savvy buyers understand that a

competitive market gives them fewer options for home choices,negotiating on price AND looking for concessions from a seller.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 individual market inwhich they have an interest. This will give them the best chance of being competitive

in the search for a home.


9/27


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10/27


Average Sales Price Analysis:Sellers:

January saw the average sales price of a home in Maricopa County decrease slightly by $2,869 from$218,945 to $216,076; this is the second highest average in the 36-month reporting period. Sellers should

be careful and continue to watch this trend as they are pricing homes in todays market.

Just because the average sales price remains high does not mean that sellers are automatically gettingmore for their homes. Sellers are encouraged to spend time with their real estate professional to

determine what is happening in their local market.

Buyers:For buyers, it remains very important to be aware of this shift in the price of homes.

Just a little over one year ago, the average sales price was $158,517. As prices remain high,

buyers may find it more and more difficult to find a home that is affordable. Interest rates remain low,so buyers still have the edge in financing options. More than ever, you need to work with your real estateprofessional to make sure you have the best possible information regarding the market value of homes

and to carefully monitor this trend to see how it will impact the availability, pricing, and terms associatedwith purchasing a home.


11/27


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12/27


Average Days on Market:Sellers:

The month of January saw the average days on market move slightly from 69 to 70 days.Considering we were at 139 days a few years ago, there is no doubt the current market is having

an impact on how quickly homes are selling.Well-priced homes continue to go under contract within a very short period of time.

If a home isnt selling in todays market, there is no doubt that it is becausebuyers see the price as being too high.

Buyers

Inventory continues to move quickly. As a result, buyers need to be aware that competitionfor great homes continues to remain very high, especially in the lower price ranges.The importance of having a reliable lender AND real estate professional to guide you through this

process has never been more important.


13/27


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14/27


List to Sales Price Ratio Analysis:Sellers:

This is the ratio a seller receives when selling his/her home as compared to the price where the home was. Thehigher the number, the closer the final sales price is to the listing price. Last month saw this number drop slightlyfrom 97.42% to 97.05% With the competitive nature of the market, this ratio still remains very high. Continue to

watch this trend, as it will continue to impact how homes should be priced in the current market in order toappeal to the buyers.

Buyers:Buyers need to pay attention. As this average remains very close to 100%, on lower priced/highly desirable

properties, buyers are still finding homes in the lower price ranges where they may have to pay above list priceAND they are competing with investors who are bringing cash to the transaction. Since a home must appraise in

order to obtain a loan, underwriters are still looking very closely at prices and making sure that homes are sellingat or below market value.This could mean that investors have an advantage if they are willing to pay higher than the list price.

Make sure your real estate professional helps you understand the competitiveness of the list price of the homeyou are wanting to purchase. You also need to be aware of the interest and sales activity in the area where youare wanting to buy and how the offer you are making competes with the market AND with trends relative to the

price where homes are selling in the areas you have an interest.


15/27


MonthlyExpir

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16/27


Expired & Cancelled Listing Analysis:Sellers:

After a significant increase in December in the number of expired and cancelled listings, January saw a 33.6%decrease over the prior month. 1,791 homes left the market in the month of January without selling.

The lower this number, the better sellers are in succeeding in selling their homes.Sellers should remain very focused on monitoring their local market to ensurethat they are pricing homes and offering terms that are appealing to buyers.

Buyers:For buyers, be aware that there are 1,791 fewer homes to consider.

At a time when inventory continues to shrink, this means an even tighter market for buyers.Buyers can expect more competition and less room for negotiation

on price and/or concessions from sellers. A shrinking market means that savvy buyerswill understand that they need to be prepared to act quickly on available homes and

now that the ability to get a deal on this inventory is more than likely not an option.Continue to watch this trend, as this, combined with price, days on market,

and list to sales price ratio are an important indicator of what buyers need to doin order to be successful in closing on the home of their dreams.


17/27


Inventory Overview:


18/27


New

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19/27


New Listings Analysis:Sellers:

The month of January saw 8,541 new homes enter the market, an increase of 52% over the priormonth. Although this is a significant increase, it does follow the pattern of the past 2 years for the

same month. Sellers should monitor this new inventory to see how it might impact the sale of theirhome more competition COULD mean prices and terms may need to become more competitive,especially in certain price ranges. In this great market, it is even more important that sellers need

to make sure they remain as the top choice for active buyers in the marketplace.

If your home is not selling in this aggressive market, it is more than likely a pricing issue buyers are still looking for the best value possible.

Buyers:Buyers pay attention! January brought you 8,541 more options! This is the highest number of newlistings in a month since October of last year. Buyers now have more options. More than ever, it isessential that you take advantage of this new inventory. Spend time with and listen to your real

estate professional to develop your strategy for succeeding in a market that is constantly changing.


20/27


Activ

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ProvidedbyKellerWilliamsRealtyProfess

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Statistics

fromJANUARY2013

MLS

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21/27


Active Listings Analysis:Sellers:

In January, the number of active listings for sale increased by 683 homes when compared to themonth of December a total of 17,939 residential active listings in Maricopa County. This is thehighest number we have seen since December of 2011 AND it did not follow the normal trend of

the prior two years. Sellers need to make sure that they continue to watch this trend -- we haveseen a steady increase in inventory, meaning that sellers will have more competition in todaysmarket. Using a real estate consultant is essential to determine how homes should be priced in

order to be competitive AND the terms that will need to be availablefor prospective buyers in order to take advantage of this market.

Buyers:The current market means that buyers continue to have more homes to consider than in priormonths. Continue to monitor this statistic, as it WILL be the statistic that indicates how much

inventory you will have to preview 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.


22/27


Months

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fromJANUARY2013

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23/27


Months of Inventory Analysis:

Sellers:January saw an increase of 7/10 of a month in the months of housing inventory. We ended the month with 3.47

months the highest this number has been since April of 2011. This statistic means, that on average,we continue to remain in a strong sellers market that is identified when this statistic reflects less than 5 months

of inventory. However, this increase should be monitored very carefully. Although this traditionally meansthat sellers will have more control in a sales transaction than the buyer, it is essential that you are meeting with

your real estate professional to determine the ACTUAL market in your area. You may find that you havemore or less control than the average.

Buyers:Buyers will want to monitor this as well, as it indicates that inventory has increased, but still falls into

a strong sellers market. A sellers market traditionally gives less control to buyers and can createsignificant competition for the current inventory. The current low inventory is resulting in homes selling

more quickly, at a higher price, and with fewer concessions for buyers. However, the type of marketwill vary from price range to price range and even area to area. Work with your real estate professional

to make sure you understand the type of market you are in.


24/27


Total Market Overview:

Sellers:This report provides a detailed breakdown of homes in Maricopa County

based on price by determining the price range where your homeSHOULD sell, you can see what the average list to sales price ratio is,the average days on market, and more importantly, the percentage of

homes selling in that price range. Note that as the price increases,so does the days on market AND the list to sales price ratio decreases.

You will also see a lower percentage of homes selling as the price increases.

Buyers:By reviewing the price range where you are purchasing, you can determine

what the average home is selling for vs. list price.This should help you make better and more acceptable offers

based on the current market.


25/27


T

otalMarketOverview


ionalPartners

Statistics

fromJANUARY2013

MLS


26/27


SummaryComm

ents

ProvidedbyKellerWilliamsRealtyProfessionalPartners

Statistics

fromJANUARY2013

MLS

IMPORTANTINFORMATION:

Although these reports are beneficial in understanding the generalmarket in Maricopa County, it is essential that you meet with

your real estate professional to study these same figures in your area,as statistics will vary from neighborhood to neighborhood.

As you make decisions related to the purchase or sale of a home, it isimportant that you understand how the current real estate trends will

impact your decisions. Your real estate professional is available to helpyou monitor and interpret them to make sure that you are taking

advantage of the current market whether you are selling OR buying.


27/27


To ensure that you receive these market updates on a regular basis, please contact yourreal estate professional or contact Susan Kraemer at (623) 229-6167

Documents

Market Report Jan 2013