Inventory is the story for the greater Phoenix real estate market in July. Active listings were down 4.1% to 15,442. The median price continues to rise, up 4.1% to $279,000.
Lack of inventory continues to squeeze buyers, especially below $200,000. And now
buyers looking for something between $200,000 and $250,000 are having a difficult
time too, as new listings in this price range were down a whopping 15.1%!
Fortunately, interest rates are still favorable, with 30-year loans at 3.75% with .5 points,
down .78% from one year ago (Freddie Mac, 07/11/2019).
In their July/2019 report, Freddie Mac says:
“The recent stabilization in mortgage rates reflects modestly improving U.S. economic
data and a more accommodative tone from the Federal Reserve to respond to the rising
downside economic risk from trade tensions and soft global economic data. On the
housing front, the latest weekly purchase application data suggests homebuyer demand
continues to rise, which is consistent with the slowly improving real estate data from the
last two months.” (Freddie Mac, 07/11/2019)
What does all this mean for today’s buyers and sellers?
Shrinking inventory along with low interest rates will continue to drive modest price
increases. If you are thinking of buying, waiting on the sidelines may not be your best
move. For sellers, you are selling into a significantly larger percentage of investors,
especially flippers. These investors are looking for a deal, not a home. Get your home
ready by freshening it up and pricing smart.
As always, work with a knowledgeable REALTOR® that you trust.
Raw Data Source: ARMLS
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