Is your house languishing on the market? The few people who show up to view the property (if they show up) are lookie-loos. If you get an offer, it seems ridiculous, right?
Continue for the truth (with charts) on Phoenix sales and inventory…
Take a look at the following chart:
*Data from charts of MLS PHX area sales @ thompsonsrealty.com (single family only)
This chart shows Phoenix area sales from Jan 2004 to April 2006.Â The two distinct rises for the summer selling seasons of 2004 and 2005 are easy to spot.Â There is a slight rise for the beginning of the 2006 season.
Actual numbers for March, April, May are as follows:
2004 2005 2006
March 8314 9199 6830
April 8506 8866 6176
May 8591 9451 6870
Following the trend across the chart, it clearly indicates sales this summer will be significantly lower than last year. While these numbers may not be appreciably lower than years previous to 2004, there is another part of the story.
As is demonstrated by this chart, increasing sales pulled down the inventory during 2004-2005. However after July of 2005 when sales went down, inventory went on to grow exponentially. Current home sellers have greater competition than ever before in the Valley’s history.
The other thing this chart shows is the seasonal nature of sales. July clearly marks the height of the season. Sellers who are not serious about marketing their homes in the next few weeks, and making sure their homes are priced agressively, may risk missing this season altogether. A lot of sellers are holding out for the hot numbers their neighbors sold for last summer. All that inventory (and that means competition) isn’t going anywhere soon. Those holdouts risk having to reduce prices even further, if they don’t take advantage of the current selling season.