Arizona home sales between June and September increased this year by 14 percent in comparison to last summer according to the Arizona Regional Multiple Listing Service.
Single-family home sales increased this summer with 7,271 units sold. Last year, 6,129 homes were sold during the same June to September period. That’s an increase of 1,142 homes between the two years.
ARMLS compiles home sale statistics for the state of Arizona. However, the causes behind the increase in sales are not directly given. Real estate professionals point to a number of reasons for this boost.
Sharri Parkins, 53, a sales executive for Berkshire Hathaway HomeServices Arizona Properties, says home sellers don’t feel like the market is strong during the summer months, leading to a decrease in homes on the market.
“What is going on is that people will take their homes off the market right around May-June because they don’t feel that there’s buyers here. But the truth is that there are buyers here,” Parkins said.
She feels this is a common misconception among home sellers.
“The truth is there are less homes on the market and just as many sales if not more. So, that is what is causing the prices to go up. It’s not people putting their homes on the market, it’s that there is still the same buyer need and there are less homes available,” Parkins remarked.
When fewer homes are on the market and there is an increase in demand, buyers may have to acknowledge finding a home with all their prerequisites may be difficult.
Ron LaMee, 63, the senior vice president of research and communications for Arizona Association of Realtors says the reduced number of homes on the market makes buyers more willing to compromise on their list of “must haves.”
“A tight real estate market, tight inventory, does not necessarily mean that business is going to go to pot. It just means that people are a little choosier. They have to be choosier or they have to settle for something they may not have thought they wanted in the first place,” LeMee said.
LeMee added that homebuyers are more willing to make concessions once they start touring homes for sale.
“Once your juices start flowing and your really thinking about picturing yourself in a home it becomes very easy to see yourself in there, and your willing to start making some compromises,” LeMee said.
Between 2014 and 2015, June was the strongest month for home sales with a 19 percent increase in total single-family homes sold.
Mackey Martin, 65, a real estate agent for Realty Executives says its families that drive the home sales in Arizona, moving during the summer is generally more convenient.
“Families are starting to make their movement by May. They are starting to look because they have to tie down their home by the first of August before school [starts],” Martin remarked.
Martin feels it’s not just the school year that fuels home sales, it’s also political elections.
“I believe that every time we have a major election it will play on the market,” Martin said.
She believes that buyers’ confidence to make a home purchase is directly connected to their perception of economic strength based on the field of political contenders.
“I think you will see that people buy directly in relation to how they feel. If they feel that the market [economy] is going to strengthen, then they’ll get out and they’ll purchase,” Martin added.
Martin said the fourth quarter of 2012 was the largest quarter of home sales in her career.
In addition to the increase of homes sold during the summer months between 2014 and 2015, the prices of homes also increased by 6 percent.