At any given time, my team has about 25 listings in the Camelback Corridor area. This high concentration of listings in one area gives us a distinct advantage when it comes to seeing local market behavior. Through our showing activity, open house attendance, and online inquiries we are able to gauge consumer demand first-hand. During the 2nd quarter, we saw a distinct shift in buyer attitudes and actions. We were very busy showing our listings during the quarter, but buyers seemed to be shopping more. There was no sense of urgency when it came to writing offers. What we saw coupled with the softening statistics below leads us to believe that the market is normalizing and reaching a plateau.
Arcadia Proper Q2 2016 Q2 2015
Number of Sales 35 40
Avg. Days on Market 193 84
Avg. $390 $340
Avg. Sales Price $1,697,457 $1,333,017
As the numbers above show, the Arcadia neighborhood took a step back in homes sales year-over-year, and showed a dramatic increase in days on the market which solidifies my assessment that the market was a bit soft. The days on market were slightly skewed because 5130 E Exeter AKA The Nordon Manor sold after many years on the market. Taking this sale out of the equation reduces the average days on market to 135, which is still well above the 84 days last year. While the market was drastically slower, I should note that there were 9 sales above $2,000,000 during the quarter.
Biltmore Proper Q2 2016 Q2 2015
Number of Sales 22 28
Avg. Days on Market 163 104
Avg. $286 $298
Avg. Sales Price $851,805 $1,026,232
The Biltmore market showed the same downtick in activity year-over-year. The number of sales was down and average days on the market increased significantly. In my assessment, both neighborhoods seem to be suffering from too many overpriced listings. Many homeowners are testing the market at higher prices and buyers are not willing to pull the trigger at this price level. It is good to note that the homes that sold during the quarter listed within an average of 6% of final sales price. Price it right and it will sell.
In closing, I wanted to let you know that I refinanced my home on July 8, 2016 at 3.25% on a VA loan. Transparency breeds trust…I wouldn’t recommend anything I wouldn’t do myself. If you are planning to stay in your home, I would urge you to take advantage of the BREXIT fears and current bond market to lock in all-time low rates. Also, a big happy birthday to my wife, Ashley!