More inventory, more competition, smaller buyer pool. That sums up April’s market. According to the Arizona Regional MLS, April property sales in the 85044, 85045 and 85048 ZIP codes were down by 150 sales or -12.8 percent from 172 in April of 2013 and 68.5 percent higher than the March sales of 89. April 2014 sales were lower than April of 2013 and 2012. April’s Year-to-Date (YTD) sales of 349 are 33.3 percent behind last year’s YTD sales of 523.
Additionally the median sales price continues to decline. In April it was $243,500 down -2 percent from $248,550 in April of 2013 and -6.3 percent from $260,000 in March. The average sales price was $276,866 flat from April of 2013 and down -14.6 percent from $324,229 in March. Yet, it was still higher when compared to April of 2013 and 2014.
April inventory increased 9.4 percent to 607 and up 102.3 percent from April of last year. When compared to 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. April’s DOM was 51, down 22.7 percent from 66 days in March and up 24.4 percent from 41 days in April of 2013.
April’s sales price per square foot was $143, up 9.2 percent from $131 in April of 2013. This is a good indicator the direction of property values, which appear to be back on track.
There were 196 new listings placed on the market in April 2014, down -10.9 percent from 220 last month and down -7.1 percent from April of 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. April of 2013 showed 98 percent, which was up from 97.5 percent last month and down from 98.8 percent in April of 2013. This is only a slight change.
The impact of changes in mortgage requirements and rates always impacts the market to some extent. Rates have trickled down a little bit to the high 3’s and low 4’s, so buyers should definitely take hold of this opportunity.
When we look at the combined graphs, we see that inventory is up, pending sales are down and sold listings are equal to April of 2013. It is trending toward a buyer’s market. However, sellers are still selling at 98 percent of list price. This means that homes that are priced right are the ones closing.
• 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.