Residential Market Update 2016 Quarter 4 Information Proudly Provided by your Business Development Managers: Nancy Pierson Biltmore / nancyp@eta-az.com / 602-769-1438 Maggie Clark Scottsdale / maggiec@eta-az.com / 602-769-5565 De Payne Tempe / depayne@eta-az.com / 602-769-5561 Candace Wren Northwest / candacew@eta-az.com / 602-769-5562 Ashley Schmidt Mesa / ashleys@eta-az.com / 602-769-1058 Liz Tepeyac Sun City / lizt@eta-az.com / 602-769-0899 Adrienne Constantinou Chandler / adriennec@eta-az.com / 602-376-3011 John Nolan Surprise / johnn@eta-az.com / 602-769-1074 If you like the services we provide, please write EQUITY TITLE AGENCY in the Title and Escrow section of your next contract!
Residential Market Update Dear Valued Client, Here is the Market Update for October 1 st, 2016 through January 1 st, 2017. 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 2015. 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 2016 2016 MLS Sales Up 7.0% overall compared to 2015 72.9% 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 2015. 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.
Valleywide Comparison Yearly Market Analysis - Number of Sales Year Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Totals 2006 9,933 9,602 13,145 11,039 12,321 12,599 10,200 10,703 9,833 10,180 9,253 9,996 128,804 2007 8,414 7,732 9,572 8,471 8,889 8,299 7,592 7,125 5,688 5,971 5,611 5,883 89,247 2008 4,387 4,574 5,359 5,963 6,488 6,462 6,784 6,139 6,720 6,594 4,684 6,082 70,236 2009 4,753 5,433 7,552 8,156 8,687 9,614 9,234 7,696 8,001 8,163 7,488 7,827 92,604 2010 5,549 6,158 8,657 8,955 8,536 9,353 6,843 6,530 6,653 6,245 6,328 6,991 86,792 2011 6,165 6,520 9,212 8,725 8810 9432 7891 8446 7659 7135 6975 7801 94,771 2012 6373 7293 9,581 8,545 8,937 8,394 8,050 8,257 7,030 7,895 7,306 7,531 95,192 2013 6,462 7,073 8,658 9,032 9,703 8,512 8,744 7,965 7,084 7,086 5,943 6,686 88,948 2014 5,496 6,029 7,331 8,195 8,208 7,855 7,443 7,203 6,930 6,927 5,614 7,187 84,418 2015 5,319 6,163 8,580 8,957 9,066 9,747 9,024 8,003 8,160 7,474 6,280 8,246 95,019 2016 6,007 6,872 9,639 9,658 9,898 10,285 8,796 9,353 8,798 8,409 8,251 8,685 104,651
Monthly Average Sales Price per Square Foot Greater Phoenix Area Information deemed reliable but not guaranteed Jul-16 $138.18 Aug-16 $138.16 Sep-16 $141.42 Oct-16 $144.51 Nov-16 $144.25 Dec-16 $149.77
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 1/1/17 258 79 111 Mesa 1/1/17 1,318 389 512 Gilbert 1/1/17 879 264 385 Chandler 1/1/17 762 227 313 TOTAL 3,217 959 1,321
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 1/1/17 280 56 95 Sun C W 1/1/17 274 74 78 Surprise 1/1/17 803 190 226 TOTAL 1,357 320 399
Paradise Valley Comparison City: Paradise Valley Single Family Residence Information deemed reliable, but not guaranteed ACTIVE PENDING SOLD PV 1/1/17 367 14 24
Luxury Comparison Luxury properties include those listed at $1,000,000+ Information deemed reliable but not guaranteed Luxury ACTIVE PENDING SOLD 1-1.5mil 1/1/17 658 41 69 1.5-2mil 1/1/17 390 15 22 2-3 mil 1/1/17 365 13 12 3+ mil 1/1/17 301 5 10 TOTAL 1,714 74 113
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 1/1/17 204 95 104 Good 1/1/17 432 115 166 Litch 1/1/17 142 27 46 TOTAL 778 237 316
Peoria/Glendale Comparison Data Used Cities: Peoria and Glendale Information deemed reliable but not guaranteed Breakdown by City: P/G ACTIVE PENDING SOLD Peoria 1/1/17 734 177 244 Glendale 1/1/17 698 210 278 TOTAL 1,432 387 522
Camelback Corridor Comparison Zip Codes: 85016, 85018, 85251 Single Family Residence Information deemed reliable, but not guaranteed Cback Corr ACTIVE PENDING SOLD 85016 1/1/17 133 17 38 85018 1/1/17 225 23 47 85251 1/1/17 83 15 32 TOTAL 441 55 117
Cave Creek Comparison City: Cave Creek Single Family Residence Information deemed reliable, but not guaranteed Cave Creek ACTIVE PENDING SOLD 1/1/17 318 27 65
Ahwatukee Comparison Ahwatukee Zip Codes: 85044, 85045, 85048 Breakdown by Zip Code: Ahwat ACTIVE PENDING SOLD 85044 1/1/17 113 31 46 85045 1/1/17 43 9 14 85048 1/1/17 141 17 48 TOTAL 297 57 108
Scottsdale Comparison City: Scottsdale Information deemed reliable but not guaranteed ACTIVE PENDING SOLD Scotts 1/1/17 2,338 231 380
Apache Junction Comparison City: Apache Junction Information deemed reliable but not guaranteed ACTIVE PENDING SOLD AJ 1/1/17 167 34 55
Fountain Hills Comparison City: Fountain Hills Information deemed reliable but not guaranteed ACTIVE PENDING SOLD FH 10/1/16 260 24 40
Buckeye Comparison City: Buckeye Information deemed reliable but not guaranteed ACTIVE PENDING SOLD Buckeye 1/1/17 567 146 172
Desert Ridge/Tatum Corridor Comparison Zip Codes: 85032, 85050, 85054 Breakdown by Zip Code Desert Ridge/ North Phoenix ACTIVE PENDING SOLD 85032 1/1/17 142 53 79 85050 1/1/17 116 27 47 85054 1/1/17 12 2 7 TOTAL 270 82 133
Valleywide Distressed Properties Comparison Active Properties January 1st, 2017 Sold Properties Valleywide Information deemed reliable but not guaranteed