Increasing inventory, more competition and a smaller buyer pool. That continues to sum up the market. According to the Arizona Regional MLS, July property sales in the 85044, 85045 and 85048 ZIP codes were 137 sales, down 17.5 percent from 166 in July 2013 and 1.5 percent higher than the June sales of 135. July 2014 sales numbers were lower than July of 2013 and 2012. July’s year-to-date (YTD) sales of 868 down 19.2 percent behind last year’s YTD sales of 1074.
The median sales price was $273,000, down 5.6 percent from $289,250 in July of 2013 and up 3.4 percent from $264,000 in June. The average sales price was $308,260 down 3.8 percent from July of 2013 and up 3 percent from $299,211 last month.
July’s inventory increased 4.3 percent to 505 and up 48.1 percent from 341 in July of last year. When compared with 2012 and 2013, this is the highest level of inventory we have seen on the market.
Days on the market (DOM) is an indicator of whether we are in a buyers or sellers market. An increasing trend of DOM may indicate more of a buyers’ market, while a downward trend may indicate a seller’s market. July’s DOM was 60, up 20 percent from 50 days in June and up 100 percent from 30 days in July 2013. This is a significant increase.
July’s sales price per square foot was $143, down 1.4 percent from $146 last month and up 0.2 percent from 142 in July 2013. This measurement is a good indicator of the direction of property values, which appear flat.
There were 170 new listings placed on the market in July 2014, up .6 percent from 169 last month and down 5 percent from 179 in July 2013.
The last thing we need to look at is sales price vs. original listing price. The closer to 100 percent, the more of a seller’s market is indicated. July 2014 showed 98.1 percent, which was up from 97.9 percent last month and down from 98.9 percent in July 2013. This is only a slight change.
The changes in mortgage requirements and rates always affect the market to some extent. Rates are steady and in the high 3s and low 4s, so buyers should definitely take advantage of this opportunity.
If you are thinking of putting your home on the market for sale, be sure to price it competitively, remove all the clutter and stage it to look inviting. These are the properties that beat out the competition and get sold first.
• Linda Berg is branch manager and designated real estate agent for the Ahwatukee/Tempe office of Coldwell Banker Residential Brokerage. She has been a Realtor since 1978 and past-president of the Southeast Valley Association of Realtors. Reach her at (480) 753-3122 or www.azmoves.com/Linda.Berg.