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December Market Update

The best pricing indicators in any real estate market are supply, demand, and interest rates, along with derivatives of each. In Phoenix and its surrounding areas, the amplitude of supply and demand has been consistently low for the last three years, fostering a slow steady rise in prices of 7-10% equity gain, per year, for average sold price per square foot. One notable stat last month was the number of closed sales, nearly 7000, which was a whopping 29% higher in November 2016 than in November 2015. Measured against only a 3.6% rise in new listings comparing the same two months, this shows a shift in demand that favors sellers. This helps explain why last week, Realtor.comsenior economist Joe Kirchner forecast Phoenix as the country’s #1 metro area for 2017 housing markets.

November 2016 did have the biggest 30 year fixed interest rate jump we’ve seen since June 2013, from 3.47% to 3.77% ( But rates are still very low in the big picture, and lower than last November when they averaged 3.94%. While this jump may deter a few buyers who will either hold their breath for rates to go back down or have lost buying power due to an upward shift in monthly payments, this will likely spur activity from buyers who want to lock in a good rate before they rise more.

Data sources:, ARMLS, and freddiemac.comdecember-infographic

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Dawn Matesi

REALTOR®, Associate Broker

Designations: CNE, GRI, Green

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