It’s a Price Sensitive Market, Again
March 24, 2014
While much of Arizona has been in a seller’s market for the last 2 years, recent changes have us in a more balanced market position. Inventory of homes for sale has risen in the last year and home sales have slowed.
|Tucson||Feb 2014||% Change from Feb 2013|
|Months of Inventory||6.1||+33%|
|Phoenix||Feb 2014||% Change from Feb 2013|
|Months of Inventory||4.9||+53%|
As a result of higher inventory and lower home sales, home prices have flattened. In addition, the gap between the median price of active listings and home sales is widening.
What does it mean?
We expect the housing recovery to continue in 2014 at a slower pace of growth compared to the past 2 years. Buyers continue to look for value, forcing sellers to be very aware of asking price. This gap in perceptions between some buyers and sellers makes a review of pricing strategy prudent for sellers; especially at mid to upper price points and for those on the market for 2 months or more.
In 2014, we can expect a return to a more price sensitive market and more competition for sellers than during the last 2 years. “Value priced” listings will sell quickly, while those not priced correctly are less likely to sell.
These statistics are based on information obtained from the TARMLS and ARMLS on 03/05/2014. Information is believed to be reliable, but not guaranteed.