As you can see from the graphs below, closed sales in May dropped 2.2% from April 2014. Likewise, the average sales price in May dropped 2.1% from April 2014. Neither drop followed the trend from the past two years. Active listings have held fairly steady since January 2014 and generally are the same or higher than at any point in the last three years.
This combination of factors, combined with the fact that interest rates are still below 5%, indicate that it is a great time to buy in the Phoenix/Scottsdale area right now. In addition to being able to get a great i nterest rate, buyers have more inventory to choose from than at any time in the last three years. Although there’s no real indication that prices will shoot up again in the near future, interest rates could rise at any time. Remember that just a one percent increase in interest rates will have a greater negative impact on a monthly mortgage payment than an increase in prices of approximately ten percent!! So, buyers, get out there and start looking now while you can take advantage of these great rates! Sellers – all is not lost. Although there was a small dip in the average sales price in May 2014, prices have been holding fairly steady in general (there’s always small ups and downs in any market). Additionally, homes that are in great condition and are priced correctly are still selling. Plus, sometimes the best time to enter the market is after a little dip.
I’m always here to help. If you know of someone who is looking to buy or sell a home, please call me with their name and number. I’ll be happy to follow up and take great care of them.
Click on any of the following graphs to ENLARGE: