The spring buying season has begun. January brings the highest levels of luxury and retirement listings to market, while March brings the highest level of mainstream sellers. Encouraging news is that while demand is 16% below normal, it has improved since last September where demand was 24% below normal. Also improved are the number of properties under contract – 7% higher than this time last year. So while the market for the average seller is not as robust or as easy as hoped, it still is improved even if only mildly so. As to supply, after years of below normal ranges it currently is back to normal levels. This seesaw of supply and demand leaves the overall the valley in a gentle buyer’s market. But, as usual there are geographic submarkets performing differently. The Cromford Report shares a closer look:
Total inventory in the Arizona Regional MLS is up 9% over last year and combined with lower demand places the Valley in a slight buyer’s market overall, with large central cities in modest seller’s markets and growing cities on the outskirts in prolonged buyer’s markets.
Not all cities are below normal in demand. In fact, Apache Junction is 23% above normal for demand and normal for supply, ranking the city as the 4th strongest seller’s market for now. Many growing cities in buyer’s markets have normal levels of demand, but high supply. These cities include Buckeye, Gold Canyon, Goodyear, San Tan Valley, and Surprise, where annual sales have increased quickly over the past year as a growing number of buyers have taken advantage of attractive seller and builder incentives. Developers have responded by scaling back the number of permits to avoid prolonging the oversupply situation and encourage a more balanced market.
Advice to buyers: it is a good time to buy. You have more choices combined with lower interest rates and lower pricing than in the past.
Advice to sellers: What was true last year is true this year – the properly priced and well maintained homes will sell with good marketing.
As always, we are here to answer specifics for your situation. No strings attached.
Russell & Wendy Shaw
(mostly Wendy)