Phoenix Real Estate Market March 2018 A Quick Look Back

Dated: 04/05/2018

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Median Sale Price up $20,000 YoY (March 2017)   -   17% of Sales are Closing Over Asking Price

 

What Does It Mean?

For Buyers: We are seeing the percentage of sales with seller concessions awarded to buyers dipping, down to 24% in the Q1 of 2018 after 2+ years of consistent 26%-28% readings. This is another indicator of dwindling buyer negotiating power due to a prolonged supply shortage. Entry level homes are seeing the highest percentage of closings with seller concessions, in March sale prices between $150K-$250K saw concessions at a rate of 30-36%. Buyers were most likely to see some relief in the West Valley, as we are seeing seller concessions in closing costs in Youngtown at 54%, and Buckeye at 52%.

Cities with the smallest percentage of concessions seen in closing costs are those considered affluent and retirement areas, such as Paradise Valley, Scottsdale, Sun City West and Sun Lakes, all in the 2-8% range.

For Sellers: The percentage of successful sales over asking price is increasing and is expected to continue. In March, 17% of sales closed over list price, in March 2017 it was 14%. Properties sold between $100K-$200K had the highest percentage at 24% sales over list price, followed by the $200K-$300K range at 18%. The market between $300K-$1M is the most improved with 12% sold over list compared to only 7% last March. In contrast, there were zero sales over listing price in the $1MM+ market.

Areas in the Phoenix Valley with the highest percentage of sales over listing price are El Mirage & Youngtown, both at 50%. Tolleson comes in at 45%.There is clearly high demand and we are seeing bidding wars and escalation clauses all over the place in hot parts of the market.

 

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