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:
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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
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There have been 2,949 closed listings across Greater Phoenix, slightly above the 2,937 we saw in 2017
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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.