Thanks to low housing inventory and eager homebuyers, the national housing market is moving at its fastest pace seen since 2012. According to Trulia’s latest price and inventory report, the total number of homes for sale in the United States is down a full 20 percent compared to five years ago.
Not only are there fewer homes to choose from, the homes that are available end up selling at an extraordinary pace. In 2012, over half of homes (57 percent) lingered on the market after 60 days. Today, less than half (47 percent) are still available two months after listing.
If you’re thinking about buying a home in Phoenix, preparing yourself for the fast-moving road ahead is crucial. Plus, consider the following tips on what you need to do as a homebuyer to remain ahead of the curve, especially in a metro like Phoenix where homes go quicker than most.
Phoenix Market Time and Inventory
Homes in the Phoenix-Mesa-Scottsdale metro are moving faster than the majority of U.S. markets. Just 39.5 percent of Phoenix condos and single-family homes are still on the market after 60 days, which is far less than the national average. While homes sell fast in the Phoenix metro, there’s not much of a housing shortage compared to other mid-sized markets across the U.S.
Fortunately for Phoenix homebuyers, for-sale inventory rose 34 percent during the same 5-year period. Given the quick moving market yet improved for-sale supply, Phoenix is somewhat of an outlier. For most metros, large drops in inventory and fewer homes on the market after 60 days transpire concurrently. That’s because low inventory typically encourages buyers to move fast, which brings the average market time down considerably.
However, greater housing supply lessens the chance for competition or bidding wars that put many buyers in the hot seat. For example, in the Gilbert real estate market, the median sales price is a moderate $292,250. While this figure is a big jump from when home prices fizzled in 2012 ($212,000), the median sales price only jumped 2.5 percent since last year.
Tips for Homebuyers
While inventory in Phoenix is higher than it was four years ago, it’s still one of the fastest moving housing markets in the nation. The share of homes still on the market after 60 days is down 4 percent from 2012. While you may not struggle to find homes that suit your needs, acting fast is important if you want to close.
Being prepared before you put an offer in on your dream home helps. A qualified real estate agent will guide you through the necessary steps, some of which include getting pre-qualified for a mortgage loan or talking to a home inspector. And, don’t rule out homes that have been on the market past 60 days. Although they might need a little bit of work and don’t impress buyers searching for move-in ready interiors, a home in good working condition with a competitive asking price could be a lucrative investment. Older homes may only need a few cosmetic tweaks to make them shine, giving you the chance to customize your new home exactly to your liking.
Ready to buy your new home in the Phoenix metro area? Check out our featured listings or contact us directly so we can help you with your home search.