Take a look at the ARMLS (Multiple Listing Service for the Phoenix Metropolitan Area) statistics posted for June results below. Now is truly the time to sell if you are considering selling!
We are in an inventory starved dynamic with no reduction in demand:
*There are a total of 15,994 homes available for sale today. Of those, 12,564 are single family detached homes (the rest are Condo, townhouse or other dwelling types). That means we have 2.5 months of supply. A normal and healthy market would be a least double – to the tune of 30,000 – 35,000 homes available.
*8,228 homes were sold in June which sounds great, but is down almost 13% from prior year. This decrease is driven by lack of home inventory.
*Because there are few homes, pricing has increased. Reported for June, pricing has increased 22% on a year over year average.
Your obvious question: “Why don’t I just wait to put my home on the market if the home prices continue to rise?” Look at another market condition that will impact you as a Seller, and Buyers who are treading water right now waiting for you home to come on to the market. A Buyer’s purchasing power is diminishing as interest rates climb. In the last month, interest rates climbed nearly 1%. For the $200,000 Buyer, that means a Principal and Interest increase of $115/month! Your Buyers will soon be priced out of your home – not because of the price of your home, but the affordability of their home loan!