Our Greater Phoenix Market as a whole has been in a balanced market since August and is expected to turn towards a buyer’s market this month. The only areas still holding out are the Northeast Valley cities of Paradise Valley, Fountain Hills, Cave Creek and Scottsdale.
Buyer demand has continued to remain low but this is providing opportunities in our marketplace for buyers that we haven’t seen for the past two years. One opportunity being seller concessions. In October, 44% of sales involved a seller contribution to the buyer at closing with the median concession amount of $7,400. Properties that closed the first week in November showed a median contribution of $9,000. Seller concessions can be used by buyers towards closing costs or to help offset rates with a buy-down.
Historically in October, about 10,000 new listings are added to our supply count but this October was the lowest recorded at just over 7,334 new actives. This has caused supply to stagnate over the past month and provides a small relief for existing sellers. Although our market has quickly turned away from a seller’s market, most sellers are still walking away from the closing table with a profit due to the amount of equity they have in their home.
With our changing market, I want to ensure you are informed and of course I am here to help you navigate your home buying/selling needs.
