Residential Market Update

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Winfred Rodgers
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1 Residential Market Update 2016 Quarter 4 Information Proudly Provided by your Business Development Managers: Nancy Pierson Biltmore / nancyp@eta-az.com / Maggie Clark Scottsdale / maggiec@eta-az.com / De Payne Tempe / depayne@eta-az.com / Candace Wren Northwest / candacew@eta-az.com / Ashley Schmidt Mesa / ashleys@eta-az.com / Liz Tepeyac Sun City / lizt@eta-az.com / Adrienne Constantinou Chandler / adriennec@eta-az.com / John Nolan Surprise / johnn@eta-az.com / If you like the services we provide, please write EQUITY TITLE AGENCY in the Title and Escrow section of your next contract!

2 Residential Market Update Dear Valued Client, Here is the Market Update for October 1 st, 2016 through January 1 st, Please note that the Valley Wide graph represents all of the MLS. The table below that graph just represents recordings for new and re-sales for Maricopa County. Active Listings and Sales Total active listings (with no UCB) have gone down by 1,345 units over the last quarter. As of January 1st we sit at 20,158 active listings for all property types. Sales are at 25,345 for Quarter 4 of 2016 down only 1,602 units compared to Quarter 3. We are currently have 3.4 months of supply, (based on Active listings with no UCB). Traditionally, 3-4 months of supply indicate a balanced market. December re-sales and new sales in Maricopa County were 8,685 compared to the 8,246 in December 2016 was the largest December unit sales month since 2006! Absorption rate Absorption rate is the percent of sales that are sold each month of the inventory. A higher percent means that inventory is moving at a faster rate, and thus is a Seller's market. The total absorption rate is 28% as of January 1 st. Certain areas of town have higher percentage of absorption rates, they are: Median Price: The median price in Maricopa County for January 1st 2017 was $243,500. October 1st 2016 it was $239,400. In January of 2016 it was $205,000 for a 19% increase! In January of 2015 it was $195,000. Median Prices have risen by 105% since August 2011 which was the bottom of the Market! Real Estate is still a good investment! Market Summary of MLS Sales Up 7.0% overall compared to % of sales were under $300,000 (number of sales up 3.4% ) 19.6% of sales were between $300,000 and $500,000 (number of sales up 20.2% ) 6.1% of sales were between $500,000 and $1,000,000 (number of sales up 15.4% ) 1.4% of sales were over $1,000,000 (number of sales up 8.1% ) 2016 Was the highest unit sales since 2006! Desert Ridge 49% South East Valley 41% Southwest Valley 41% Ahwatukee 36% Peoria and Glendale 36% Apache Junction 33% Buckeye 30% Sellers over $500,000 More buyers purchased in the higher price ranges in 2016 than in The number of homes on the market increased, and combined with new homes over $250,000, created a more competitive and balanced market and put price increases in check. Buyers under $300,000 These homes have appreciated 7.6% in the past year, which created a very competitive market. This made finding move-in ready homes and winning the bid more stressful and competitive than expected, especially for single-family homes under $200,000. Looking forward in the short term, the market can expect more buyers emerging with improved credit scores that were affected by the foreclosure and short sale crisis. Recent announcements regarding FHA loan limit increases and lower mortgage insurance premium fees may make it easier to get a loan and that will contribute to more demand for listings under $300,000. Higher interest rates will cause some buyers to purchase smaller homes than they anticipated, which will put even more pressure on the market under $300,000 which is already short of supply for existing demand. With nearly 73% of all sales in this price point, it s reasonable to expect appreciation to continue to be positive for the Phoenix Metropolitan Area overall.

3 Valleywide Comparison Yearly Market Analysis - Number of Sales Year Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Totals ,933 9,602 13,145 11,039 12,321 12,599 10,200 10,703 9,833 10,180 9,253 9, , ,414 7,732 9,572 8,471 8,889 8,299 7,592 7,125 5,688 5,971 5,611 5,883 89, ,387 4,574 5,359 5,963 6,488 6,462 6,784 6,139 6,720 6,594 4,684 6,082 70, ,753 5,433 7,552 8,156 8,687 9,614 9,234 7,696 8,001 8,163 7,488 7,827 92, ,549 6,158 8,657 8,955 8,536 9,353 6,843 6,530 6,653 6,245 6,328 6,991 86, ,165 6,520 9,212 8, , ,581 8,545 8,937 8,394 8,050 8,257 7,030 7,895 7,306 7,531 95, ,462 7,073 8,658 9,032 9,703 8,512 8,744 7,965 7,084 7,086 5,943 6,686 88, ,496 6,029 7,331 8,195 8,208 7,855 7,443 7,203 6,930 6,927 5,614 7,187 84, ,319 6,163 8,580 8,957 9,066 9,747 9,024 8,003 8,160 7,474 6,280 8,246 95, ,007 6,872 9,639 9,658 9,898 10,285 8,796 9,353 8,798 8,409 8,251 8, ,651

4 Monthly Average Sales Price per Square Foot Greater Phoenix Area Information deemed reliable but not guaranteed Jul-16 $ Aug-16 $ Sep-16 $ Oct-16 $ Nov-16 $ Dec-16 $149.77

East Valley Comparison Cities: Tempe, Mesa, Gilbert, Chandler Single-Family residences Breakdown by City Information deemed reliable but not guaranteed

5 East Valley Comparison Cities: Tempe, Mesa, Gilbert, Chandler Single-Family residences Breakdown by City Information deemed reliable but not guaranteed SE Valley ACTIVE PENDING SOLD Tempe 1/1/ Mesa 1/1/17 1, Gilbert 1/1/ Chandler 1/1/ TOTAL 3, ,321

6 Northwest Valley Comparison Cities: Sun City, Sun City West, Surprise Information deemed reliable but not guaranteed Breakdown by City: NW ACTIVE PENDING SOLD Sun City 1/1/ Sun C W 1/1/ Surprise 1/1/ TOTAL 1,

7 Paradise Valley Comparison City: Paradise Valley Single Family Residence Information deemed reliable, but not guaranteed ACTIVE PENDING SOLD PV 1/1/

8 Luxury Comparison Luxury properties include those listed at $1,000,000+ Information deemed reliable but not guaranteed Luxury ACTIVE PENDING SOLD 1-1.5mil 1/1/ mil 1/1/ mil 1/1/ mil 1/1/ TOTAL 1,

9 Southwest Valley Comparison Data used: Cities: Goodyear, Litchfield Park and Avondale Information deemed reliable but not guaranteed Breakdown by City: SW ACTIVE PENDING SOLD Avon 1/1/ Good 1/1/ Litch 1/1/ TOTAL

10 Peoria/Glendale Comparison Data Used Cities: Peoria and Glendale Information deemed reliable but not guaranteed Breakdown by City: P/G ACTIVE PENDING SOLD Peoria 1/1/ Glendale 1/1/ TOTAL 1,

Camelback Corridor Comparison Zip Codes: 85016, 85018, 85251 Single Family Residence Information deemed reliable, but not

11 Camelback Corridor Comparison Zip Codes: 85016, 85018, Single Family Residence Information deemed reliable, but not guaranteed Cback Corr ACTIVE PENDING SOLD /1/ /1/ /1/ TOTAL

12 Cave Creek Comparison City: Cave Creek Single Family Residence Information deemed reliable, but not guaranteed Cave Creek ACTIVE PENDING SOLD 1/1/

Ahwatukee Comparison Ahwatukee Zip Codes: 85044, 85045, 85048 Breakdown by Zip Code: Ahwat

13 Ahwatukee Comparison Ahwatukee Zip Codes: 85044, 85045, Breakdown by Zip Code: Ahwat ACTIVE PENDING SOLD /1/ /1/ /1/ TOTAL

14 Scottsdale Comparison City: Scottsdale Information deemed reliable but not guaranteed ACTIVE PENDING SOLD Scotts 1/1/17 2,

15 Apache Junction Comparison City: Apache Junction Information deemed reliable but not guaranteed ACTIVE PENDING SOLD AJ 1/1/

16 Fountain Hills Comparison City: Fountain Hills Information deemed reliable but not guaranteed ACTIVE PENDING SOLD FH 10/1/

17 Buckeye Comparison City: Buckeye Information deemed reliable but not guaranteed ACTIVE PENDING SOLD Buckeye 1/1/

Desert Ridge/Tatum Corridor Comparison Zip Codes: 85032, 85050, 85054 Breakdown by Zip Code Desert Ridge/

18 Desert Ridge/Tatum Corridor Comparison Zip Codes: 85032, 85050, Breakdown by Zip Code Desert Ridge/ North Phoenix ACTIVE PENDING SOLD /1/ /1/ /1/ TOTAL

19 Valleywide Distressed Properties Comparison Active Properties January 1st, 2017 Sold Properties Valleywide Information deemed reliable but not guaranteed

Residential January 2010

Residential January 2010 Karl L. Guntermann Fred E. Taylor Professor of Real Estate Adam Nowak Research Associate Another improvement to the ASU-RSI is introduced this month with new indices for foreclosure