Welcome 2014!!! First quarter is underway and the National news tells us home values have risen nearly 28% in the Southwest! What great news for sellers…so the seller does the obvious thing-LIST MY HOUSE!! Multiply that by a few times and now “presto” we have inventory- lots of inventory. Something we haven’t seen in awhile in our real estate market. What is normal you ask? A typical real estate cycle sees a 4- 6 month supply of inventory. How is that calculated? The formula goes like this….
HOMES SOLD IN LAST 12 MONTHS/ 12 MONTHS= HOMES SOLD PER MONTH
CURRENT MONTH’S ACTIVE SUPPLY / HOMES SOLD PER MONTH= MONTHS OF INVENTORY
In the North Phoenix area 1,100 homes sold in the last 12 months. Divide that by 12 months and we get an average of 92 homes sold per month. The current active inventory in the North Phoenix area is 544 homes. Divide that by 92 and we get 5.9 months worth of inventory. What this means is it will take approximately 6 months to sell all 544 homes currently on market .
Therefore, it can take up to 180 days on market to sell your home in a normal market. Yes, that is normal. The last whirlwind decade would prove otherwise, but it was an extraordinary time in real estate- nothing normal about it. With a larger supply of inventory the Buyer has more to choose from and too many choices can slow down the buying process. The best advice I have for Sellers is to make your home stand out from the rest. Be the cleanest, most updated ( don’t go overboard- remember you need to reap that equity gain), nicely staged and priced well- competitively. Be realistic and be motivated these are the key ingredients for a successful sale in a “normal” market. So if your home is listed for longer than 45-60 days without an offer do not despair, this is normal!! What was the old adage…… “All good things come to those who wait”…..or maybe you need to price it better- be realistic and be motivated. And most importantly hire an exceptional Realtor. PSSST I know a really great Realtor!!
Looking for a great escape this Summer?
Take a drive to Prescott and enjoy a picnic lakeside under the tall Ponderosa Pines. Or visit Slide Rock in Sedona..Arizona’s natural rock waterslide in Oak Creek canyon. For more information on exciting Summer fun in the Valley of the Sun visit http//:www.younginternationalrealty.com