The 2018 listing activity (aka supply) has been consistently lower than that of 2017.
Seems odd, doesn’t it? I mean, doesn’t it seem like you see another flipper home every time you look around a street corner?
Ask the folks in the greater Coronado neighborhood and they’ll tell you that, I think. Of course, they have other concerns, as older homes are being gutted and doubled in size so that they often look very little like their original historic predecessors –despite the hopes to protect historic homes.
But, I digress…
Back to the listings. Have a look at the 2018 supply compared to the 2017 supply for Phoenix. Supply has lagged anywhere from 5% (now) to 12% (March).
Why? What’s up with that? What does that mean for you?
First, the “why.” When I’ve spoken to our friends at the Cromford Report, they’ve confirmed to me the same factors we’ve seen brewing for a while: there is an insufficient amount of new construction and labor is tight. So, if developers can’t build or flip quickly due to a labor shortage, we won’t see new listings coming on the market.
What I find particularly interesting is how this breaks down by area.
See this chart. This shows the difference in supply between 2017 and 2018 by major valley areas.
What accounts for this difference? According to Tina at the Cromford Report, South Phoenix has gone gangbusters since week 23 in the median sales price zone. She believes this is one of the only areas where they are building affordable housing in gated communities.
Second, the “what does that mean for you?” If you are selling, this is great for you. Of course, over-price your home in a fit of irrational exuberance, but don’t leave money on the table. We can help with pricing your listing right.
However, if you are buying, it means you are up against an excess of demand. Too many buyers for the supply. Be prepared to compete.
We need to analyze two things if you are thinking of getting in the market: location and availability. Are you looking in an area where a lot of building and flipping is going on? Are you looking in areas that are in need to new inventory?
Call us at 602-456-9388 and we can build a plan together.
