Our last update in December 2015 talked about the strength of the market and we predicted that we would see approximately a 7.5% price appreciation, year over year. So what has happened during this quarter of 2016?
So far we have seen a 6% increase in prices in the 1st quarter, year over year. Last year the valley as a whole had a 6.5% appreciation in prices, with some parts of the valley seeing higher numbers.
Right now, we have approximately 22,000 active listings on the market. This same time last year we also had about 22,000 active listings. No real change there. But…this March we sold 8502 homes. In March 2015 we sold about 7900 homes. Why the increase in demand? Supply, Demand and Low Interest Rates.
With solid price appreciation, sellers are now “unfrozen” or entering the spring thaw, coming out from underneath heavy mortgage debt and can now sell, buyers have recovered as well. We typically see a 5% price increase when inventory is about 4-5 mos supply. Now and for the past 8 mos. we have seen inventory still at all time lows of about 3.3 mos. Lower supply, stronger demand. Buyers are out in full force, ready, willing and able to buyer. Are you ready to sell?
Arrowhead Sold Homes –March 2016
|3/1/2016||20786 N. 61st Dr||3167||$489,900|
|3/8/2016||21693 N. 61st Ave||2239||$339,500|
|3/25/2016||6353 W. Aurora Dr||1827||$290,000|
|4/5/2016||6154 W. Quail Ave||3309||$415,000|
|4/15/2016||5640 W. Arrowhead Lakes Dr||
There are a couple factors helping our demand rise. 1 Banks will now lend people money who have short sold or foreclosed on a house over 4 years ago. These tenants are now turning back into buyers. 2. Confidence. Our marketplace has seen positive appreciation since the the dark years. Financing is still somewhat tight, so this type of market growth is much healthier than what we witnessed in 2005. 3. Population growth. Improving economies around the country are allowing people to sell their homes and move to the sunshine. Arizona is the only state that has rising population in each of the generational categories that are buying homes; Millennials, Gen Xers, Baby Boomers, etc.