For Buyers:
2018 is not going to be any less competitive for buyers in general. The market is starting out with 14% fewer listings compared to 2017 however, there are 35% fewer listings under $200K, a price range that commands 34% market share of all MLS resales in Greater Phoenix. 51% of MLS sales were between $200K-$400K in 2017, and supply in this range is down just 7%. 14% of sales were between $400-$1M and supply is down nearly 9%. Only the market over $1M is starting 2018 with 4% more for sale, 2017 sales over $1M were less than 2% of the market.
For Sellers:
Over 51% of newly constructed condominiums, townhomes and single-family residences sold in 2017 were between $275K-$500K as of November and approved single family permits are up nearly 12% going into 2018. Added inventory from new construction continues to keep mid-range property appreciation at sustainable levels at the current level of demand. The last wave of boomerang buyers is expected to rejoin the masses in homeownership this year after waiting 7 long years to qualify for conventional financing after foreclosure. These buyers span all price ranges and their return combined with positive inbound relocation and employment keep Greater Phoenix a positive environment for sellers.
Commentary written by Tina Tamboer, Senior Real Estate Analyst with The Cromford Report
©2018 Cromford Associates LLC and Tamboer Consulting LLC
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