August Market Tid-Bits:
News for Buyers:
- The number of closings with seller-paid closing costs rose 27% in July compared to June equating to 7% of all closings for the month of July, and now August is running at 13%.
- Prior to 2020, the established baseline for seller-paid closing cost assistance averaged 25-28% of MLS sales and over the past 15 months the average has been just 3-4.5%. The increasing trend in August to 13% is expected to continue as large cash-based investors have pulled back their acquisitions, leaving many sellers to cater to normal buyers once again.
- For most of 2021 and the first part of 2022, buyers had very little time to decide on a property before it went under contract. Last May, half of all homes that went under contract were on the market for only 7 days or less. This month homes are on the market a median of 21 days prior to an accepted contract, giving buyers more breathing room and time to consider their offer.
- More evidence of a growing buyer’s advantage, the percentage of properties closing over list price has declined from 58% in April to 24% August-to-date and continues to decline. The median amount over list has also declined from $20,000 to $7,000. As the current balanced market continues, expect to see this measure drop to just 10%-15% of properties closing over list.
News for Sellers:
- The last week in July saw 4,172 price reductions on Greater Phoenix listings, equating to 26% of active supply for that week. The median price reduction was $15,000 and 78% were over $5,000.
- The peak of price for 2022 so far was May, since then the median sales price has declined an average of 1.8% per month, however the downward trend has not been consistent across all price ranges.
- It is the properties between $1M-$1.5M have seen the strongest decline since May, with an average decline of 3.2% per month. This is the only price range above the overall average decline of 1.8%. The runner up is the $500K-$800K with an average decline of 1.2% per month. All other price points are within 0.6% of May’s average.
Information provided by Tina Tamboer, Senior Housing Analyst with The Cromford Report