Ahwatukee Foothills Real Estate Market Update, August 1, 2019
What In *Ahwatukee-Foothills Is Going On With The Real Estate Market?
Increases In The Average Value Of An Ahwatukee Property STALLS In June And July!
This Ahwatukee Foothills Real Estate Market Update for August 1, 2019 covers the period from January 1, 2019 to July 31, 2019. Home values are up over the same period in 2018 but the number of units sold fell 8.4% for the period. After a strong performance in the first six months of 2019, the average sale price of Ahwatukee properties had increased 5.1% over the same period in 2018. The 1/1/2019 – 7/31/2019 results are in and the average value of an Ahwatukee property continues at the year to date rate of increase 4.7%.
The Numbers For July, 2019
The January to July 31, 2019 sales figures are in. There were 1002 homes sales in Ahwatukee-Foothills and the average price of an Ahwatukee Foothills property is holding at $372,041. This is very close to the average value of $372,392. we saw in the January to June 30th period. It is safe to say, based on these numbers, that the increases in the average price of an Ahwatukee property have stalled in July.
In the January to July period of 2018, 1087 homes sold and the average price of an Ahwatukee-Foothills property was $355,088. In the January to July 31, 2019 period, 1022 properties sold and the average price of an Ahwatukee property was $372,041. The average price was 4.7% over 2018 values for the same period.
Last month we reported that the number of units sold had dropped 5.5% in the January to June 30th time period when compared to 2018. The drop in units sold continues in January to July 31, 2019 period with 1002 units sold versus 1087 units sold in the same period in 2018. The number of units sold in 2019 is 8.4% lower than the number of units sold in the same period in 2018. The gap in the number of units sold in 2019 versus 2018 is increasing as the year progresses.
The Average Days On Market have remained essentially the same with the average property going under contract in 63 days in 2019 versus 68 days in 2018.
In the period from June 1, 2019 to June 30, 2019, 131 properties came on the market and 145 closed escrow. The average price of properties that closed in July was $369.967. This is significantly lower than the average price of $400,000. we reported for the month of June. The June value of $400,000. appears to be a one month aberration from the year to date average property price we are seeing around the $372,000. mark.
Last month we reported that the Ahwatukee listing inventory is at historic lows. The number of homes on the market has been hovering around 200 daily (at time of writing (8/1/2019) there were 188 Active listings). This indicates that we have a 1.27 month inventory of listings. In other words, our current inventory of 188 listings would be depleted in 1.27 months at the January to July, 2019 average rate of 148 sales per month. This confirms that we are still in a very strong seller’s market.
Last month we questioned whether Ahwatukee home values could/would continue to climb at the pace they had established in the first six months of the year. With this current increase of 4.7% in the average price of an Ahwatukee property in the January 1 to July 3, 2019 time frame, it is apparent that prices are holding there own with an expansion around the 5% mark versus 2018 values. With the month of August upon us, we are past our traditionally hottest market (and we are not referring to the weather). The spring and early summer months are when we traditionally see our most active market and, thus, the period when we see a majority of our price increases.
As we said last month, it is difficult to say with certainty that the low inventory is solely responsible for the drop in the year to year sales volume. We are definitely seeing a trend in the low number of units sold in the Ahwatukee-Foothills market in the January 1, 2019 to July 31, 2019 time frame. It appears that the low inventory of active listings is not pushing prices higher as the year progresses. The inventory remains low, however, average values appear to have plateaued in the range of $372,000. for the average Ahwatukee property.
The law of supply and demand would dictate that a low inventory would result in price increases. The static average values around $372,000. for the January to June and January to July time frames would appear to defy the law of supply and demand. There are many unexplained incongruities in the current market.
As we have said previously, it will be interesting to watch this market unfold and the interplay of the trending average property values, the number of units sold and the daily inventory as this year progresses. The impending Presidential election is heating up and could be another wild card that could come into play in the coming months. Many forces are in play and only time will tell where this market goes. The one thing that is predictable is that it will be interesting to watch and interpret.
Is It A Good Time To Sell Your Ahwatukee Foothills Property?
The simple answer is yes! The Average price of an Ahwatukee-Foothills property is up but increases in the average value of an Ahwatukee property stalled in July. The listing inventory is at record lows. Interest rates are holding under 5%. Buyers continue to anxiously wait for every new listing. It is still one of the best times in recent years to list and sell your Ahwatukee Foothills property!
If you are thinking of selling and trying to time the market, it is important to note that increases in the average value of an Ahwatukee property stalled in July and the potential disruptions of an impending election year could make this an even better time to list and sell your Ahwatukee property.
If you are thinking of selling an Ahwatukee Foothills property or if you have any real estate related questions we would love to discuss your best options with you.
We are here to help!
Please don’t hesitate to call!
Henderson Real Estate
Allen Henderson is a Guest Contributor to “The Ahwatukee-Foothills News”
Be sure to see his columns and up to date commentary in the Real Estate Section
*Ahwatukee Foothills is the official name of the Urban Village in Phoenix. Ahwatukee-Foothills lies south of South Mountain Park. “Ahwatukee-Foothills” is comprised of zip codes 85044, 85045 and 85048. Some confusion occurs when some folks refer to Old Ahwatukee as “Ahwatukee” and “Ahwatukee-Foothills” as a separate entity. So, for clarity, when we use the term “Ahwatukee” we are referring to the entire area designated “Ahwatukee Foothills,” including (85044, 85045, and 85048) unless otherwise noted.