The Maricopa County residential real estate market experienced an increase in listing inventory as the number of pending and completed transactions dropped from September to October. Simultaneously, property values enjoyed a small but welcome increase, though home prices have not experienced a significant bump in the past eighteen months. This means sellers entering the market should set a realistic listing price. Buyers should be prepared for multiple offer situations for properties listed at under $200,000. Although, this won't occur in every transaction and buyers are able to take advantage of a more traditional seller inventory rather than distressed properties.
Maricopa County October 2016 Home Prices
The average sales price rose from $281,188 in September to $284,200 during the month of October in Maricopa County. That figure is also up from August of this year, something that's not occurred over about the past year-and-a-half. Conversely, the average list to sales price ratio dropped to 97.43, down from 97.53 in September, as well as August's 97.56, but up from July's 97.47. However, the average list to sales price ratio remains strong as the number has not fallen below 96.30 since May 2013. This ratio number represents the difference between the listing price and the final selling price. The foreseeable future will likely not record much of a change through the rest of the year for the average list to sales price ratio but prices might continue to slightly drop.
Current Home Mortgage Rates
Though the Federal Reserve has not taken action on rates so far this year, change is likely on the near horizon. “In one line [this report is] more than enough to keep the December hike on track,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, told Market Watch.com in a recent interview. However, rates remain at near historic lows. Right now, a 30-year conventional mortgage rate comes-in at 3.59 percent. A 15-year conventional home loan rate currently stands at 2.9 percent, while a 30-year FHA mortgage runs at 3.4 percent. The current jumbo 30-year home loan rate is 3.75 percent and the 5/1 adjustable rate mortgage comes-in at 2.89 percent. But, with gains in employment, subtly rising wages, and inflation not a large threat, these rates will probably rise by the end of the year or at the beginning of 2017.
October Residential Home Sales by Loan and Transaction Type
There were a total of 7,104 closed residential real estate transactions during the month of October in Maricopa County -- down from the September figure of 7,411. Of all closed sales, there were 3,510 conventional loan transactions, 1,511 cash sales, 1,495 FHA transactions, and 527 VA loan sales. In all, these traditional real estate transactions accounted for 96.38 percent of all closed sales, with distressed properties making up 3.62 percent. Of that small percentage, 1.82 percent were short sales and 1.8 percent were foreclosures.
Maricopa County Real Estate Listing Statistics
The number of active listings increased by 4.3 percent during October, as did the average sales price by 1.1 percent, as well as the average days on the market, up 2.7 percent. Pending listings fell by 1.3 percent and sold listings dropped by 4.2 percent in Maricopa County.