Phoenix – Ahwatukee-Foothills Real Estate Market Update – September 1, 2019
Real Estate Update – September 1, 2019
The Ahwatukee-Foothills real estate market remains strong but 41% of listings require a price reduction to sell.
August Sales Update
The Ahwatukee-Foothills average property value rose again in August to $384,772. up from the $369,145. average home value in July. 140 properties closed escrow in August versus 148 in July. We are averaging 143 closed listings per month in 2019. Our current daily average inventory of active listings is hovering around 170 units. At the current 143 average number of sales per month, our inventory of 170 active listings would last 1.19 months. Only 64 listings came on the market in August. The number of listings that came on the market in August is less than half of the average number of sales per month in Ahwatukee. August is a slow listing month as the summer winds down and families ramp up for the return to school. Hopefully, listing activity will pick up in September and we will be able to meet buyer demand for new listings, as the temperatures drop and we move into our active fall market.
Anything under a six month inventory is considered to be a strong seller’s market. The inventory is very low but the number of sales remains strong and definitely favors sellers. Nicely updated, well priced and well maintained properties, that are marketed effectively with video and HDR photos, are going under contract a matter of a few days and often a few hours. If you are planning to sell an Ahwatukee property, the numbers are certainly in your favor and there has never been a better time to sell.
January to August Sales Update
When we look beyond our August, one month, snap shot of the Ahwatukee market, and review the year, we see the real estate market is strong and the trend is upward as well. In the January 1, 2019 to August 31, 2019 time frame, 1,145 properties closed escrow and the average sale price was $373,486. In the same period in 2018, 1,221 Ahwatukee-Foothills properties sold at an average price of $356.860. The average value of an Ahwatukee-Foothills property in 2019 is up 4.6% over the strong performance in the same period in 2018.
It is interesting to note and worth a mention, that even in this strong seller’s market, 459 of the 1,145 or 41% of the Ahwatukee-Foothills listings that closed required a price reduction before they went under contract. This is a phenomenon we see month after month and year after year. Obviously these properties came on the market listed at a higher price than buyers were willing to pay. We are in a strong seller’s market, however, buyers are obviously still not willing to pay a huge premium over value to get a home. Our advice, as always, is to price a property no more than 3% over the comparable recent sales. When properties are listed and priced more than 3% over comparable sales, they often are not shown as frequently as the well priced listings that are vying for the buyer’s attention. They don’t get shown! If they do get shown, buyers can immediately see that there is better value in competing properties. The listing stagnates. The days on market increase and other buyers begin to wonder what is wrong with the property. Often, these are nice properties that would have sold quickly, if they were priced accurately. They become stigmatized in buyers minds and they languish on the market as buyers pass them by for fresh and accurately priced properties. Listing higher than value, as 41% of Ahwatukee sellers found out, leads to increased marketing time and may even cause properties to sell at a lower price than if they were priced accurately at the start of the listing. One of my sayings is that “you have to be in the ballpark to play the game.” The best way to get in the ballpark, get in the game and “WIN” is to price your property effectively, within 3% of comparable closed sales.
So, in summary, the Ahwatukee-Foothills real estate market is healthy and strong. The average value of a property is rising monthly, interest rates are holding under 5% and typically lower. The active listing inventory is at record lows and it is definitely a seller’s market. It is an excellent time to list and sell an Ahwatukee-Foothills property. Feel free to contact us with any questions.
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Henderson Real Estate
*Ahwatukee Foothills is the official name of an 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.