The Rhythms of the Market in Phoenix
Real estate is like surfing. If you observe the waves long enough, you get to know the rhythms of the market. You can see how certain seasons advantage buyers vs sellers, or even when conditions might be better for new home buyers.
Have a look at this graph to illustrate. This is called the “contract ratio”. Its the ratio of all properties that actually sell and close, out of all of those listed each month.
For our purposes, the ratios represented in of this chart are not as important as the pattern you can see – the rhythms of the market. Notice that the percent of homes that sell and close tends to go down at about the same time every year: July – January. The percent goes up at about the same time every year: February – June. If you look closer, you will also see that Sept – Oct often stay very stable.
Why?
Well, more people are looking and purchasing from February to June. That means more buyers and more sellers. But, look. If you consider that most homes take 4-6 weeks to close from the time they are listed, then you can see that the homes listed in January represent the up-tick that you start to see each February.
The converse is true, too. If you are listing a home to sell in June, you have already crested that wave and fewer people are out looking for homes.
What I’ve observed by watching the rhythms of the market over the years is that you should list in January if you can. If you can list in the first half of the year, then aim for September. People tend to be back from vacation, and they get serious until Thanksgiving, when the tryptophan in their turkey puts them to sleep until about mid-January.
What you absolutely want to avoid doing, if you can, is listing in October or November. You will likely just accumulate days on market with fewer people out looking for homes.
Michelle and I have several new listings coming on in January and February. We know already that 2017 is supposed to see Phoenix as one of the busiest markets in the country. Now is the time to look (before interest rates go up) and now is the time to list (when people are the most active).
If you have questions about listing your home, give me a call at 602-456-9388. We can help you surf those market waves.
