We now have 2 complete weeks of December data in hand so it is fair to compare with the same 2 weeks in past Decembers:
We have seen 3,268 new listings across Greater Phoenix, 6% lower than the 3,478 we saw in 2017 and the second lowest total after 2014
There have been 2,949 closed listings across Greater Phoenix, slightly above the 2,937 we saw in 2017
There have been 3,340 accepted offers on listings across Greater Phoenix, down 7% from the 3,607 we saw in 2017
At 6% the drop in new listings is not as severe as for the first week of December which was down 11%. However, it indicates we still see subdued flows of new supply in December, well below the average over the past 18 years.
Closings are running at a good pace, but new contracts are now down 7% having been down 4% after the first week. Buyer enthusiasm is low partly because of higher cost of ownership but also because there is a shortage of attractive inventory for them to choose from.
In 2018, home loan delinquencies are at an extremely low level and home equity is at a high level. Consequently, the fall in demand is merely causing sales rates to drop and allowing buyers a little more negotiation power than a year ago. This is likely to lead to a slower appreciation rate but is very unlikely to lead to home values falling.
Data and commentary courtesy of ARMLS® and Cromford Associates LLC.