The beginning of 2017 saw overall gradual increases from the annual holiday slowdown for Phoenix area real estate. The number of new listings as well as total listings have increased past the amount we saw in December, which is commonly the one month out of the year where we see the fewest homes on the market. The number of sold homes retracted slightly from December to January but by the end of February was almost as high as that last month of 2016. Again, this is not unusual, as many buyers push to close their purchases in December rather than push out the transactions into the new year.
The healthiest post-holiday bump we’ve seen is in the average price, which ARMLS shows was $270,349 in December followed by a modest increase in January to $271,427. In February, however, we saw a strong uptick to $280,260.
Although interest rates have been inching up gradually, they are still low enough to make home purchases affordable. Economic conditions and job prospects have improved and Millennials are increasingly interested in making home purchases. The challenge they face now is the keen competition for homes in the under $250,000 range. 2017 will be an interesting year in Phoenix area real estate!
** Data provided by ARMLS and is not guaranteed as accurate by ARMLS.