Supply Shortage Giving Buyers Headaches
It’s extremely rough to be a buyer right now, especially for those looking for lower priced homes. While active listings are down 15% overall in the Valley, listings under $200K are down a whopping 30% from this time last year and declining, and active listings between $200K-$300K are down 10% and not rising. Properties under $300K comprise 70% of all year-to-date sales, making areas such as the West Valley and Southeast Valley the most frantic and competitive for buyers.
March, April and May are typically the most active months for buyer contracts and this year is not expected to be any different. Sellers are enjoying less competition for increasing demand, driven by more qualified buyers entering the market. While the total number of listings under contract is not increasing due to fewer homes for sale, contracts on listings between $200K-$400K are up 12% compared to this time last year, and contracts between $400K-$800K are up 18%. Over $800K, supply and demand are near identical to last year’s levels at this time.