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2018 Arizona Real Estate Recap

HAPPY NEW YEAR EVERYONE!! We thought it was high time to do a quick recap of how the 2018 Arizona Real Estate Market ended up and give you a few of our thoughts on what some of the trends moving into 2019 may be. Remember that real estate is HYPER-Local and so what you hear on the news may or may not (probably not) reflect what is happening in Arizona and even the information I will share with you here will be more valley wide and may not reflect what is happening in your neighborhood! Please contact me directly with specific questions and for detailed to you numbers!

Let's start with some MARKET FACTOIDS.
Supply: Overall we currently have about 3.0 months worth of inventory
Active DOM(Days on Market): 106
Closed DOM: 67
Active $/SF (Price per square foot): $223.35
Sold $/SF: $164.71
Average Sold Sales Price: $326,462
Median Sold Sales Price: $260,500
A couple of points I want to make off of the factoids; first, you'll notice some discrepancies between the Active's DOM number and the Closed's DOM number. Those properties that are taking more than that 67 days on market are affected by all kinds of different things, like price point, over pricing, condition, etc, so we need to drill down into that number in your area specifically to understand what it means to you. The other point I would like to make is the difference between the Active price per square foot and the Sold price per square foot. What this is telling us is that sellers are still trying to over price their homes and we are seeing more discrepancy between what the list price is and what the sold price is. This can affect your days on market and ultimately cost you more money in the long run than if you had priced your house properly in the first place.
Moving right along. Our numbers at the end of the year have been trending down year over year, BUT don't let that fool you, we actually closed a total of 95,798 homes sold in 2018 and that is the 2nd HIGHEST total sales over the last 10 years and 3rd highest on record. We just really front loaded the 2018 sales.
Here are some trends that you can expect to see more of in 2019.
  1. You are going to see more homes for sale in the HIGHER PRICE POINTS. Look for more luxury homes to go on the market in 2019.
  2. Affording a home will continue to be challenging. With interest rates continuing to affect affordability and a very healthy real estate market in Arizona, home prices are expected to continue to increase making affordability in the month to month payment challenging. We do NOT expect this trend to change any time soon, so let's talk SOONER rather than later about locking in that monthly payment!
  3. Millennial will STILL dominate home buying! We love Millennials and they are some of our best buyer clients! No matter what anyone tries to tell you, Millennials ARE buying homes!
  4. The new tax law is still a wildcard. Because this is the first year that most home owners and buyers will be filing taxes under the new GOP tax codes, we don't really know how this is going to affect the average home owner/buyer. We will have a better idea if this is going to boost the real estate industry or not some time after April tax time.
Hopefully this gives you a few things to consider and think about. We are always here to be a resource and help to you and anyone you come in contact with that has real estate goals and questions. Please check us out on social media, visit our website at www.Living48RE.com, email me directly at katie@Living48re.com or even give me a call or shoot me a text at 480-415-1341. Have a great day!

Want to know what your home is worth? Click HERE for your free home value estimate!

Want to know what is on the market? Click HERE to search the MLS!

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