This week’s Phoenix Real Estate Market Inventory update …
Net single-family detached properties rose again, this time by about 200 homes, while sales have continued to slow. The 3,545 sales over the preceeding 30 days constitute the lowest total since January through February 26 of this year.
Take a second look at those figures … 3,545 sales vs. 38,635 currently active listings. The question I hear most often, both from my sellers and from other homeowners (through Zillow, Trulia, etc.), is why has my home not sold? The simple answer is only 1 out of every 10 homes currently on the market (less than that actually) are selling.
Personally, my sales are outpacing my expired listings by 4:3 ratio. It’s not quite where I want it to be, but it’s also well above the current market averages.
As I explain at each of my listing presentations, marketing plays a part in whether a home sells. But marketing is but one of several factors that determine if and when a home will sell. Financing needs to be available. Location plays a part. The home has to be in stellar condition (or priced accordingly). Market conditions are a factor.
And, above all else, a home has to be priced to sell. Price can compensate for location, for condition, even for market conditions. Marketing alone cannot. After all, a really, really spectacular brochure on a home priced 5% above the current market doesn’t change the fact the home is priced 5% above the current market. Buyers know it. They’re doing the research themselves on the Internet and can see sales prices for comparable homes.
The 1 home in 10 that does sell usually is in model-like condition. It’s usually located inside a subdivision, rather than along a busy street. It often features upgrades similar homes may not have. And it’s usually priced at the bleeding edge of the market.
Speaking of the edge of the market, also keep in mind this is not a static figure. As others adjust their prices to become that 1 in 10, everyone else faces the decision of falling in line or waiting for the leading edge to come back to where they are.
|CITY||SOLD 6/16/07-7/16/07||ACTIVE 7/16||Absorption Rate
as of 7/16/07
|Sun City West||46||411||8.93||1.27||Buyer|
Data provided by ARMLS. Data deemed reliable but not guaranteed