{"id":174099,"date":"2023-02-24T09:17:38","date_gmt":"2023-02-24T16:17:38","guid":{"rendered":"https:\/\/inbusinessphx.com\/?p=174099"},"modified":"2023-02-24T09:17:38","modified_gmt":"2023-02-24T16:17:38","slug":"area-sellers-still-receiving-top-dollar-for-homes-despite-fewer-closed-sales-yoy","status":"publish","type":"post","link":"https:\/\/staging.inbusinessphx.com\/?p=174099","title":{"rendered":"Area Sellers Still Receiving Top Dollar for Homes Despite Fewer Closed Sales YOY"},"content":{"rendered":"

\"\"<\/a><\/p>\n

January delivered a strong start to the year, offsetting a slouching December, according to a report released by Phoenix REALTORS<\/a>\u00ae.<\/p>\n

Analyzing the latest ARMLS data, there were 6,848 new listings hitting the market, compared to 4,105 in December. As well, average sale prices rose in January from December and sat at $539,617, which was up by nearly $4,000.<\/p>\n

\u201cThe first month of the year saw a rebalance in the real estate market,\u201d said Butch Leiber, president of the Phoenix REALTORS board of directors. \u201cBuyers and sellers alike remained cautious, but pending sales rose as the market saw a greater inventory of homes.\u201d<\/p>\n

In January, there were 17,085 homes on the market, an increase of 160.1% from January 2022 when there were only 6,568 homes available. Data reflecting days on the market until sale also revealed that sellers typically saw their homes on the market for 76 days, a 10-day increase over the past month, and a 30-day increase from the previous January. There is also nearly three months of housing supply inventory available, which seems to be excessive given that a year ago houses barely saw 24 days on the market before sale.<\/p>\n

\u201cSome analysts may feel that the numbers are heading in the wrong direction, but when we take an honest look at the data, there\u2019s a clear indication that the market is rightsizing to more sustainable levels,\u201d said Leiber. \u201cGiven how red hot Arizona\u2019s real estate market has been the past few years, most Arizonans \u2013 especially newcomers to the state \u2013 see a downward spiral instead of the correction we were anticipating.\u201d<\/p>\n

While last January was ripe with pent-up demand, a shortage of housing supply and soaring sales prices, data revealed home sellers are still receiving top dollar for their homes. In fact, in January, they received 97.1% of their asking price, which was only down 3.3% from January 2022, but inched 0.1% higher from the December figures.<\/p>\n

\u201cMortgage rates, inflation and economic conditions will continue to have an impact on the residential market, but Arizona is fortunate to still be entertaining positive sales activity as new businesses prepare to open and greater numbers of out-of-state home buyers enter the market,\u201d said Leiber.<\/p>\n

Sellers are also getting more creative as they compete with other properties for the attention and dollars of fewer buyers, as seller concessions have made a significant comeback.<\/p>\n

\u201cPrior to the boom years, sellers offered some degree of help to buyers in 35-40% of all transactions, which often helped buyers with closing costs. During 2021, that dropped to 10-15% of all sales,\u201d said Leiber. \u201cSince the shift in the market, we’re seeing more than 50% of all sales including seller concessions \u2013 and they\u2019re significant. The median concession is currently over $9,000 – nearly double pre-pandemic amounts.\u201d<\/p>\n

One reason the amount is so high is that sellers are now helping buyers buy down their interest rate. There is an increase in \u201c2-1 buy down\u201d where the seller helps reduce the interest rate for the first two years of the loan, which is typically a 2% buy down for year one, and a 1% buydown for year two.<\/p>\n

\u201cThis helps immensely with affordability as buyers hope rates will drop during that two-year period, allowing them to refinance at a lower rate,\u201d said Leiber.<\/p>\n

As the market continues to evolve and right-size itself, Phoenix REALTORS continues to keep a trained eye on data to help successfully guide buyers and sellers through both sides of the process.<\/p>\n","protected":false},"excerpt":{"rendered":"

January delivered a strong start to the year, offsetting a slouching December, according to a report released by Phoenix REALTORS\u00ae. Analyzing the latest ARMLS data, there were 6,848 new listings hitting the market, compared to 4,105 in December. As well, average sale prices rose in January from December and sat at $539,617, which was up […]<\/p>\n","protected":false},"author":2,"featured_media":159253,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","footnotes":""},"categories":[6],"tags":[12],"class_list":["post-174099","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy-trends","tag-featured-stories"],"_links":{"self":[{"href":"https:\/\/staging.inbusinessphx.com\/index.php?rest_route=\/wp\/v2\/posts\/174099","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/staging.inbusinessphx.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.inbusinessphx.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.inbusinessphx.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.inbusinessphx.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=174099"}],"version-history":[{"count":0,"href":"https:\/\/staging.inbusinessphx.com\/index.php?rest_route=\/wp\/v2\/posts\/174099\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging.inbusinessphx.com\/index.php?rest_route=\/"}],"wp:attachment":[{"href":"https:\/\/staging.inbusinessphx.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=174099"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.inbusinessphx.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=174099"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.inbusinessphx.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=174099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}