Monthly Market Update: MAY ' 06 STATS

# OF ACTIVE LISTINGS in entire MLS (may include properties outside of Phoenix):
Feb 06 – 34,507 (residential only)
Mar 06 – 37,215 (residential only)
Apr 06 – 38,483 (residential only)
May 06 – 43,505 (residential only)

ACTIVE LISTINGS
May 05 - Average list price: $378,584
May 06 - Average list price: $412,475 ($417,901 last month)

PENDING LISTINGS
May 05 - Average list price: $304,765
May 06 – Average list price: $377,307

SOLD LISTINGS:
May 05 - Average SALES price: $289,339
May 06 – Average SALES price: $362,492

LIST TO SALES PRICE RATIO:
May 05 - Average: 99.73%
May 06 – Average: 97.28%

DAYS ON MARKET
May 05 - Average: 36
May 06 – Average: 71

What does this mean for sellers? It means many things:

1. The number of active homes on the market continues to increase.
2. Even though the market has slowed, the average sales price continues to
be significantly higher than a year ago.
3. The average home that is priced according to the market will, on average,
be on the market for just under 2.5 months.
4. The home that is priced according to the market will, on average, sell
for 97.28% of the asking price (this is a slight decrease over April)
5. As of today, we have 43,505 homes on the market, 8,676 pending, and there
were 7,583 sales in the month of May. This means that with the inventory we have right now, with no new homes entering the market, we have a supply of homes for the next 4.65 months AND that 87% of those homes under contract should close. If that follows, that means 13% of the homes under contract could either return to the market OR expire and leave the market.
6. Sellers need to understand there is greater competition from the new home
market, as builders are offering higher incentives to lure in prospective buyers. In some cases, we are seeing incentives as high as $100,000.

Please check back as, I will continue to update these figures each month so that you can see how these numbers are changing. As has been the case, pricing a home competitively is becoming more and more important. Please feel free to contact me if you have any questions, or leave a comment to share with other readers. Until next time, carpe diem!