Phoenix Metro Area Real Estate Market Updates

Phoenix Metro Area Real Estate Market Updates - February 13-11, 2018

Phoenix Metro Area Real Estate Market Updates: As observed by the Cromford Report, which provides daily market insight into the Phoenix metro area residential resale real estate market -- offering unique insight into its future direction. The report includes observations on real estate in Southeast Valley, comprised of the highly desirable communities of Chandler, Gilbert, Tempe, Mesa, and Queen Creek in Maricopa County.

Cathy Carter, REALTOR® - Serving Southeast Valley Real Estate Buyers & Sellers - Call Today!

February 13 thru January 2018 was a strong month for Maricopa County second-home purchases. The report showed a 15.1% of sales classified as owner-occupied but not primary residences, which is the highest percentage recorded since March 2014 -- up from 12.2% in January 2017. Second home purchases appear to be back on an upward trajectory, with January not as strong for owner-occupied primary residences compared to second-homes purchases and investor purchases. Owner-occupied primary residences came in at 70.0% of transactions compared to 73.9% in January 2017 and 74.2% in January 2016.

On February 12, and as observed on February 13, cash sales appeared to be strong in January and investor purchases were also hitting a high point, with Maricopa County single-family homes purchased by investors jumping to 13.2% -- up from 12.3% in January 2017 and the highest reading since February 2016. The investor purchase percentage for townhome/condo properties is typically much higher than for single-family homes, with the percentage in January 2018 at 24.1% -- up from 23.1% in January 2017 and the highest reading since October 2016.

According to the report, there was a significant jump in the percentage of new homes purchased for investment in January 2018 -- 4.7% of new homes in Maricopa County, which is the highest since June 2013. Also noted was the percentage of Maricopa County real estate sales that were attached homes increased to 17.8% -- the highest reading since January 2015. Attached home sales have been on an upward trend in Maricopa County since April 2017, although not true for every month. The report showed that Pinal County is still dominated by single-family home and mobile home sales with relatively few townhouse or condo sales. However, townhome/condo sales have begun to grow as Active Adult communities in Pinal have added a few attached homes to their product mix.

On February 11, the report indicated that the downward trend of the percentage of all-cash purchased homes in Maricopa County between February 2011 and July 2016 has reversed and the percentage has been gradually increasing. According to the report, this is probably due to the increased market share by fix and flip investors and the introduction of the i-Buyers, Opendoor and OfferPad, with the majority of flip transactions having their first stage financed by cash. Also noted was that cash is used in many of the highest value luxury purchases because the wealthy don’t see a need to go through the hassle of applying for a home loan.

According to the report, January and February are typically strong months for cash purchases and July and August are relatively strong for financed purchases, indicating a seasonal trend. The percentage of homes purchased with all-cash in January 2018 was 25.3% -- up from 23.4% in January last year and the highest observed since February 2015. Due to a strong contribution from the high-end of the luxury market, the percentage of dollars from all-cash transactions was even higher at 26.7% -- up from 25.5% a year ago.

Cathy Carter, REALTOR® - Serving Southeast Valley Real Estate Buyers & Sellers - Call Today!

With over two decades of experience helping her clients buy and sell real estate in Southeast Valley, REALTOR® Cathy Carter is a true market insider with first-hand knowledge of the local market's ins and outs. Along with her team, Cathy is committed to providing warm, friendly, and professional customer service through each step of the transaction. Work with Cathy and expect unparalleled, personalized service, expert market advice, and the knowledge and expertise that only comes with two decades of experience in the local market!

Please give Cathy a call today at 480-459-8488 or fill out the online contact form, and she will be more than happy to answer any questions you may have!

CATHY CARTER, REALTOR®
ABR, CRS, CDPE
2450 S. Arizona Ave, Suite 1
Chandler, Arizona 85286
Cell: 480-459-8488
Toll-Free: 800-519-5578