Ahwatukee Foothills Real Estate Update, July 1, 2019
What In *Ahwatukee-Foothills Is Going On With The Real Estate Market?
This Ahwatukee Foothills Real Estate Update for July 1, 2019 covers the period from January 1, 2019 to June 30, 2019. Home values are up 5.1% over the same period in 2018 but the number of units sold fell 5.8% for the period. After a strong performance in the first five months of 2019, the average sale price of Ahwatukee properties had increased 4.1% over the same period in 2018. This was a continuation of the strong 2018 performance when Ahwatukee-Foothills property values increased 8.6% over 2017 prices. The dip in the rate of appreciation for an Ahwatukee-Foothills property that we noted in May appears to have been a monthly aberration as the rate of appreciation increased to 5.1% overall for the January 1 to June 30, 2019 period.
The Numbers For June, 2019
The January to June, 2019 sales figures are in. There were 855 homes sales in Ahwatukee-Foothills and the average price of an Ahwatukee Foothills property rose to $372,184.
In the January to June period of 2018, 908 homes sold and the average price of an Ahwatukee-Foothills property was $354,031. Ahwatukee Foothills Average home values have regained their pace of appreciation with an increase of 5.5% in January to June, 2019 over the same period in 2018.
The Average Days On Market have remained essentially the same with the average property going under contract in 65 days in 2019 versus 68 days in 2018.
Last month we reported that the number of units sold had dropped 7.8%in the January to May time period when compared to 2018. The drop in units sold continues in January to June, 2019 period with 855 units sold versus 908 units sold in the same period in 2018. The number of units sold in 2019 is 5.5% lower than the number of units sold in 2018 in the same period.
In the period from June 1, 2019 to June 30, 2019, 88 properties came on the market and 158 closed escrow. The average price of properties that closed in June was $400,863. which is significantly higher than the average sale price of $372,184. for the January 1, 2019 to June 30, 2019 period noted above.
Last month we reported that the Ahwatukee listing inventory is at historic lows. The number of homes on the market has been hovering between 250 to 260 daily (at time of writing (7/1/2019) there were 213 Active listings). This indicates that we have a 1.5 month inventory of listings. In other words, our current inventory of 213 listings would be depleted in 1.5 months at the January to June, 2019 average rate of 142 sales per month. This confirms that we are still in a strong seller’s market.
In our May 1, 2019 update we noted that the average price of an Ahwatukee-Foothills property was up 5.5% over the strong market performance in 2018. At that time we questioned whether Ahwatukee home values could continue to climb at that pace. In our June 1, 2019 update we noted that the rate of appreciation had dipped to 4.1% for the January to May period. With this current increase of 5.5% in the average price of an Ahwatukee property in the January 1 to June 30, 2019 time frame over the same period in 2018, it is apparent that prices are steadily increasing with an occasional monthly aberration.
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 June 30, 2019 time frame. The one month slowing in the increase in value of the average Ahwatukee-Foothills property we saw in May appears to have been a monthly aberration and the cumulative increase in the rate of appreciation to 5.5% this month indicates that the average value of Ahwatukee Foothills properties is continuing to increase. It appears that the low inventory of active listings is pushing prices higher as the year progresses. If the June 1 to June 30th jump in value of the average Ahwatukee-Foothills property continues and inventory remains low, we could see a significant increase in average value of an Ahwatukee-Foothills property at year end. The wild card will be the number of units that will be available for sale.
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. Many forces are in play and only time will tell. 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 Average price of an Ahwatukee-Foothills property is up again this month. The listing inventory is at record lows. Interest rates are holding under 5%. Buyers are anxiously waiting 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 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!
Allen Henderson Broker Henderson Real Estate 480-392-2090 Allen@HomesAhwatukee.com
*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.