MARKET UPDATE: June 2018 Sales, New Inventory, and Median Purchase Price
July 30, 2018
V.P. Business Development & Real Estate Analyst, Grand Canyon Title Agency, Inc.
The June median purchase price for a previously owned single-family home in Maricopa County matched May’s record-high median purchase price of $295,000. The previous record for median purchase price was set in June of 2006 at $287,500.
The chart below shows the median purchase price month by month for the last four and a half years. As you can see, the median purchase price for a particular month is always higher for the same month in the succeeding year. This trend cannot go on forever; however, with tight inventory and an increase in population along with job and personal income growth, it most likely will continue for the foreseeable future.
Unless otherwise mentioned, the information in this report is compiled from the Arizona Regional Multiple Listing Service, Inc. for previously owned single-family homes in Maricopa County.
For the first time this year, sales were down year-over-year in June 2018. Table 1 shows a change in sales from June 2017 to June 2018 of -336, or five percent less. This is not likely due to a drop in demand but a drop in inventory. Recently, a real estate agent told me she listed a home in Gilbert for $310,000 on a Saturday morning and it was off the market by Sunday evening. There were 12 offers. This is a good illustration of today’s competition amongst buyers for homes that are priced right in the most desirable locations and price ranges. Table 1 shows new listing inventory down 1 percent compared to last year.
Table 1. 2017-2018 Monthly Comparison of Single-Family Home Sales and New Listings, Maricopa County (Jan. through June).
Estimated Months of Supply by Price Range
Table 2 shows that the price range with the most sales in June was $200,000 to $249,999 with 1,439, followed by $250,000 to $299,999 with 1,268 and $300,000 to $349,999 with 889. These three price ranges made up 3,596 — or 54 percent — of all sales.
The estimated time of supply for these three price ranges is about one month. This means inventory is tight and it’s a seller’s market. However, there were still 3,596 buyers who were able to purchase in June. So, buyers: do not give up!
Table 2. June 2018 Single-Family Home Sales, July 4 Active Listings, and Estimated Months of Supply by Price Range, Maricopa County.
Number of Sales and Median Purchase Price for 33 Cities
Table 3 compares the number of sales and median purchase price for 33 cities located in either Pinal or Maricopa Counties that had at least 20 sales in June 2018. Twenty-two of the cities had fewer sales in June 2018 than June 2017. Five cities had a lower median purchase price in June 2018 than June 2017.
Table 3. June 2017 vs. June 2018 Comparison of Sales and Median Purchase Prices for 33 Cities, Pinal and Maricopa Counties.