During the first 3 weeks of January, home sales in metro Phoenix were down 14% compared to the first 3 weeks of 2018. The number of homes listed for sale in the MLS that went under-contract during those 3 weeks fell 12% compared to 2018, according to The Cromford Report.
First 3 Weeks January – 2019 versus 2018
- Closed Sales – Down 14%
- Number of Homes Going Under Contract – Down 12%
- Total Number of Homes Under Contract – Down 17%
That last number (total under contract) means that homes sales will be a lot lower for the next couple of months compared to 2018.
And that was despite the 30-year fixed mortgage interest rate falling from 4.94% in early November to 4.45% in mid-January, although it probably takes a while for the lower rates to have an impact on sales. Maybe sales will pick up.
On the other hand, I keep expecting the number homes hitting the market to increase but it hasn’t happened so far. New Listings are actually running 4% LESS than last year.
Somehow, it seems both buyers and sellers became discouraged at the same time.
Under-$250,000 Buyers Priced Out
Sales in the under-$250,000 range fell 24% but sales in the $250,000-$500,000 range didn’t make up the slack, they fell 4%.
It looks to me this morning as if a lot of people in the under-$250,000 price range have been priced out of the market. They can’t find what they want at a price they can afford so they’re not buying.