"A picture is worth 1,000 words..." I agree with this statement, but tend to think that numbers say a whole lot too.
We are more than half way through 2015 and the latest numbers show real estate in the Valley of the Sun is still going strong across most price points. Here's a chart showing ht number of listings under contract for each of the last 5 years, including 2015 up to week 30 (the end of last week):
Note, there are 2 price points that aren't looking so good... both are $200K or less. Why is that? There is no inventory in those price ranges. Simply put, there aren't very many homes for sale under $200,000 as prices increase across the board.
Look at this chart:
Over the last 5 years, our median sale price increased from $113,875 to $220,000 (93.1%!!). If you're cautious about the slight dip from June to July, don't be. That seasonal decrease typically occurs every year when it gets hot and everyone leaves town. Look a little closer at the chart and you'll see that in most cases, most of the spikes occurred between March-June. The dips were either somewhere between June-August or between November-January- the 2 typical times of year when seasonally the market slows down.
The quick takeaways from these 2 charts show are:
- If you're a 1st-time buyer, it's time to get off the fence and figure out a plan. Both values and interest rates are trending up. Might be better to get your foot in the door now, unless you just don't have the means and/or you plan to have a whole lot more down payment to buy something down the road.
- The move-up market between $300-500K is going strong. Pending sales are up 56% over 5 years. I'm watching homes in the $250-500K range sell so quickly, even a few that I can't fathom anyone want.
- If you plan to buy a home between $200-500K (represents 46% of our pending sales), be prepared. Have your financing, down payment and all the details in order. You snooze and you will likely lose.
- Luxury sellers, your time has come... Last year the market from $500-$2M, was soft, particularly from $800K-$1.5M. Pending sales between $500K-1M are up 48% in the 5-year period. Pending sales between $1-2M are up 15%. And how about that $2M+ market? Pending sales are up a whopping 109%!
Regardless of what you do, make sure you arm yourself with a plan and talk to me about your next steps. Whether you want to buy and need help navigating through the coming changes ("Know Before You Owe- Consumer Financial Protecton Bureau" takes effect on 10/3/15) or whether you need to sell a home and want to maximize your sale proceeds, call me today to find out how what's going on in the market around you and discuss all of your available options. I promise you'll be glad you did!