Phoenix real estate market seems to be rising with temperatures

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Where there is no vision, there is no hope.

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BY BOB TRENT,   | April 15, 2015 @ 12:28 pm  Updated Apr 16, 2015 – 4:11 pm

The Phoenix real estate market, like the weather, is heating up.

Buyer demand continues its strong rebound after a tepid 2014. Home sales in the first quarter of 2015 were up 10.5 percent compared to last year, and that’s after a January that had many real estate agents considering a career change.

In March, 7,900 homes sold, an improvement of 17.7 percent from a year ago and up almost 32 percent from February. That makes the second month in a row with a 30 percent increase in buyer demand! All this is great news if you are selling a home.

If you are trying to buy a home, that’s where things get interesting. What we want to see with two consecutive months of huge increase in buyer demand is an equal increase in homes coming on the market. That’s just not happening.

In March, new home listings were actually down 2 percent from last year, though there was an 11.6 percent increase from February. That means homes are selling faster than they are coming on the market — not good news if you are looking to buy a home.

So far, the higher demand and lower supply of homes has not dramatically driven up prices. The median price for a home in the Valley rose just 7 percent over the last 12 months. Other trends indicate that may change.

For instance, the average number of days homes were on the market dropped by three days in February, and there is now just a 3.35 month supply of homes, meaning it would take three months for buyers to purchase all the homes on the market right now.

A balanced market is between four and six months depending on who you talk to. By any measure, we are once again moving into a seller’s market.

The housing market is heating up, but not boiling over yet. Another month or two of this trend could see highly-competitive, multiple-offer situations in most price points up to $600,000. If you are currently trying to buy a home under $200,000, you know that’s already happening.



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I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years.  I am also a commercial land specialist in Phoenix and a Landspecialist in Arizona. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial /  Investment Properties in Arizona,  I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us. 

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