The only thing consistent about The Phoenix-area housing market the last few years has been inconsistency. Phoenix was one of the hardest hit cities in American when the housing bubble collapsed. It was also one of the quickest housing markets to rebound. All of the volatility in the Southeast Valley housing market has had many residents asking what will be the next dramatic shift in the housing market. Well according to Troy Reeves and “The Reeves Team” it appears the Phoenix area housing market may be starting its slow march back to normal.
As the year’s peak home buying season comes to a close, the market is showing signs of stabilizing, suggesting that the rise in home values in the near future will likely be driven by market demand, rather than inventory shortages.
Phoenix Area Highlights:
Widespread Inventory Recovery – The inventory recovery is broad and growing. The number of listings increased even though the summer season is ending, and the market registered a net increase in inventory over last month.
Prices Stabilize – Despite the increase in inventories, the median list price did not change compared to July. Absent a significant weakening in economic conditions or significantly higher rates, prices should continue to slowly rise alongside typical cost of living increases.
Sales Prices Are More Dependable – August marked the third consecutive month that sales prices in the Phoenix area, covered by the Arizona MLS, registered at over 97% of there list price. This marks a sharp increase from the begging of this year, when volatility in the market made it much tougher to price a home.
Troy Reeves accurately predicted that home values would rise significantly during the first half of the year and then ease after the upward pricing pressure of the summer months. However the upward pressure is likely to return after a short break once the snowbirds return in a few short weeks.
A benefit of housing inventory and price fluctuation returning to normal levels is that buyers will now have more of a selection to choose from. Many buyers who were turned off by the bidding wars and low inventory will now re-emerge as potential buyers.
According to Troy Reeves, the Phoenix Area market appears to be ending the 2013 home buying season on a positive note, with more balanced inventories, shorter time on market, and higher listing prices compared to one year ago.
So what do you think? Are you ready to see a return to normalcy in the Phoenix Area Housing Market? Leave your thoughts in the comment section below.
34 Responses
[…] is how stable is has been since the housing market started recovering around 2012. Take a look at this article written by “The Reeves Team” in July of 2012. This was one of our most viewed […]
Great post, I certainly hope we have reached a “normal market”
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Thanks for the comment! Troy
This is great news! I can’t wait to get our house appraised and see when it may be possible to sell and move a little closer in town…I know just the realty team to talk to 😉
Thank You Laura…You have been a continued client of our over the years..Thank You for being a constant positive representative for our team…..We appreciate that so much! And thanks for posting the comment!!!
I can tell you this. Troy is one of the best in the industry and has more knowledge than most brokers/agents I have ever met. I feel that this article is well written and reflective. I can tell you that in the Property Management world that I live in I am getting more and more clients looking to sell the home that we have rented for many years. People are able to get out from under a home that has held them hostage for many years and Investors and able to still find great deals in the market and Tenants are always looking for a good home.
Thanks to the REEVES Team for this great information for potential buyers & sellers. We are glad to to see the market is stabalizing and interest rates are still low. It’s a GREAT time to purchase a home….Troy & his team understands the real estate market (especially the East Valley)
Stephanie and her team at On Q are also very knowledgeable, My team looks to them for new market lending advice and help! Thanks for the comment guys!!
Thanks, Troy, for sharing these stats. This shift in the market should also result in more reliable appraisals and smoother transactions.
Scott, there have been a couple people that have mentioned exactly this…and I agree as well(this is creating a more stable market) Thanks
Great article Troy! We enjoy working with the Reeves Team and appreciate the information in this article.
Barb, we appreciate you as a client of ours…We are always here for you and family!
We are seeing this trend very evident on the title and escrow side as well. Homes on the market longer allows buyers to be a little less rushed in their decision-making. This should effectively lead to more solid transactions and less cancellations due to buyer’s remorse. A nice balance of supply and demand is good for everyone.
Laurie I very much agree with your comment! We will see stronger transactions, which is good for everyone involved!! Thank You
Great article Troy, thanks for the info.
Appreciate the comment Julie, we try!
We really enjoy working with The Reeves Team! From a lending standpoint, we are seeing quite a few people get “off the fence” and purchase a home. Rates have stabilized and offers are being accepted for people that have been looking for quite a while. Very nice to see true homeowners purchasing and moving in.
Thank you for the continuous updates!!
The Boughton Team
On Q Financial
These lower rates can NOT stay around forever…and the prices are still on sale! Thaks for the comment…. Boughton Team!
Great article and information! From the insurance side of things it is nice to see more homes being purchased by homeowners rather than such a glut of investors buying rentals! Thanks again for the info, Troy!
Martin you guys at “Legacy” have always been good to our clients and staff! Thank you guys for being such a good vendor! tr
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Thanks for the update.
Thanks Karen(You guys have been great clients throughout the years)
Thank You Rebecca!
Thank the Reeves Team for keeping us in tune with our market. Troy, what is your outlook on interest rates in the coming months? Is the upcoming “Fiscal Cliff” and Obamacare debacle going to have an effect on our market?
Randy, Not sure I can predict those two things! Im not as doom and gloom as others might be…….We’ve waited for this positive market for many years! I say we enjoy it while its here! You can read my blog on ALL the East valley businesses coming to town(thats what Id rather focus on) Thanks for the input!
Great news Reeves Team!
Great information! Thank you for sharing!
Great article!
As a fellow REALTOR in the same office as Troy, I can tell you first hand that Troy understands the market (especially) in the East Valley. His continued research shows not only why he is knowledgeable, but why he consistently is one of the top agents around. My only possible disagreement with this article is, I do not believe the Snowbirds will have as strong of an impact as they have in years past, thus the inventory levels may not decrease as much as they have in the past.
Jim, thank you……. I may agree with you on this as our market has seen an increase of over 26-27% from this time last year! Great comment…and I would not argue with someone with your almost 20 years of experience! Thanks Again
I look to The Reeves Team for knowledge when it comes to the real estate market. I am always pleased when I hear good news like this.
Justin…this is good news for the Valley….”thank you” for continuing to be a good client of the Reeves Team
We sure have been going through a roller coaster ride these past few years. Its nice to know the housing market may be heading back to normal.
We are now seeing stabilizing prices, longer DOM(days on market), price reductions and several new subdivisions(home builders) opening which is contributing to this new market! This is good!! Its what the valley needs! Thanks for the comment