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.

View Weekly Takeaway

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.

Weekly Takeaway:

  • 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.

This post was written by : Melissa O'Connell

News from NAR - National Association of Realtors

  • REALTORS® Confidence Index Survey: July 2019 Highlights
    on August 23, 2019 at 7:10 pm

    Eighty percent of respondents reported that home prices remained constant or rose in July 2019 compared to levels one year ago (86 percent in July 2018).

  • July 2019 Existing-Home Sales
    on August 22, 2019 at 7:30 pm

    Housing market activity this July rose 2.5% from June 2019, and the existing-home sales rate reached a seasonally adjusted annual rate of 5.42 million.

  • Homeownership and the American Economy
    on August 22, 2019 at 3:26 pm

    The U.S. Black homeownership rate today is lower than it was in 1968 when the Fair Housing Act, part of the landmark Civil Rights Act, was signed into law.

  • Existing-Home Sales Climb 2.5% in July
    on August 21, 2019 at 12:45 pm

    Although Northeast transactions declined, the other three major U.S. regions recorded sales increases, including vast growth in the West last month.