Happy March!!
When it comes to the Real Estate market, looking at supply and demand can help you determine what is to come. It is estimated that when the market reaches a four-month supply, that is when the scale tips from a Seller’s market to a Buyer’s market.
Well folks, that reality could be approaching quickly! As of February, we have reached 3.51 months inventory. Although, the numbers did fluctuate some… got up to 3.67 months inventory in January and then took a slight dip in February, that number could very well continue climbing. If we compare this February’s numbers (2019) of 3.51 (in inventory) to last February (2018) of 2.72 (in inventory), the market is significantly stronger.
When we take a look at February 2019 Listings… 22,762 Active and 6,492 Sold… we have quite a big supply, so where is the demand?
When we compare Active Listings in February 2018 (19,229) to February 2019 (22,762), we are up 3,533 listings. But when we compare Sold Listings… February 2018 (7,070) to February 2019 (6,492) we are down 578 listings. More listings but less sold. Seems that Buyers have been a bit gun shy… why are there so many out there that are not pulling the trigger?
          
We are still in a very strong market and it seems that it will continue on this way for a while. Could it be that buyers are waiting to see what will happen with the market, maybe in hopes that the prices will be driven down? Rates are still low for now but wait too long and rates could climb. It’s a catch 22, as always!
So what are your thoughts?
If you are a Buyer, are you worried about what was discussed above?
If you are a Seller, what are your thoughts? Are you thinking your home is listed too high? OR do you feel that all the NEW builds are affecting the market?
If you are interested in reading more information, I came across the below article, as it shows similar thoughts and opinions to our own 🙂
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Honestly, I feel like prices have risen so fast over the past 5 years that it is now hard for a buyer to find what they are looking for that falls within their budget. More than likely buyers are saving up and waiting it out to see if perhaps prices will dip some or at least level out.
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Brandi,
I honestly agree with you but that is what happens in a strong market 🙂
Luckily, Arizona has grown at a healthy pace and still has growth to acquire. So stay patient 🙂
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