Phoenix Market Update – December 2018 – Week 2
Phoenix Real Estate Market Update
December 2018 – Week 2
Negative news about the real estate market is becoming a common occurrence. Continue reading for insight into the Phoenix Metro real estate market and why our local market is different.The real estate outlook for 2019 is not as grim as the national media might imply.
New Listings – 3268
- 6% lower than 2017 (3478)
- Second lowest since 2014
Closed Listings – 2949
- Slightly higher than 2017 (2937)
Accepted Offers – 3340
- 7% lower than 2017 (3607)
At 6% the drop in new listings is not as severe as for the first week of December which was down 11%. However, it indicates we still see subdued flows of new supply in December, well below the average over the past 18 years.
Closings are running at a good pace, but new contracts are now down 7%, having been down 4% after the first week. Buyer enthusiasm is low partly because of higher cost of ownership, but also because there is a shortage of attractive inventory for them to choose from.
- In 2018, home loan delinquencies are at an extremely low level while home equity is at a high level.
- Consequently, the fall in demand is merely causing sales rates to drop and allowing buyers a little more negotiation.
- Keep in mind that Phoenix is the second fastest growing city in the nation. Buckeye comes in third.
- Also, Phoenix Metro Area has not had astronomical home price increases like many coastal cities.
News from NAR - National Association of Realtors
- Instant Reaction: Retail Trade Sales, April 15, 2021
U.S. advanced estimates of retail and food service sales for March 2021 recovered from the pull-back in February 2021 as consumer purchases exceeded expectations.
- Instant Reaction: Mortgage Rates, April 15, 2021
The average rate on the 30-year fixed rate home loan fell for the second straight week to 3.04% from 3.13% the previous week.
- 13 Months Later, Where Do Mortgages Stand?
According to the Snapshot on Race and Home Buying in America, which uses Census ACS data, the homeownership rate for Black Americans is 42%, Hispanic Americans 48.1%, Asian Americans 60.7%, and White Americans 69.8%.
- Instant Reaction: Consumer Price Index, April 13, 2021
Over the last 12 months, the inflation rate rose 2.6%, compared to 1.7% in February and 1.4% in January, respectively.