What a year 2017 turned out to be in our local real estate market! Values continued to improve, as did sales (units sold), with the latter exceeding the units sold since the 2009 crash! Here’s a chart showing how the housing side of the market faired in 2017:
You’ll notice that total housing units sold in 2017 was 356 units, far out pacing sales over the past six years, and a very significant increase of 28.5% over 2016; again, the largest number of units sold since the ’09 market crash. Because of the large increase in the number of units sold last year, buyers found 1) a shortage of nice inventory in our market, particularly in the latter half of the year (current Heber-Overgaard housing inventory at year-end is 144 units available for sale) and 2) a median sales price that increased to $149,500, a 4.91% increase from the previous year. On the housing side of the market, it was a great year for sellers!
Here’s a chart showing how the land side of the market faired in 2017:
On the land side of the market, we again saw an even more impressive increase in the number of units sold in 2017 – 105 total units, up from 63 units in 2016, a 66.7% increase. While the increase in the number of land units sold beat out the housing segment by more than double, land values continued to decline in 2017, with the median price down to $33,500, a 9.46% decrease from the previous year. As of year-end 2017, we continue to have nearly a 28-month supply of land on the market in our community . . . far too much inventory to flip values from negative territory to positive. However, the inventory is down dramatically from 2016’s nearly 60-month supply of available land for sale. While sellers are finally seeing their land move in the market, the buyers still drive this segment of the market as indicated by the excessive inventory and declining values.
The question us Realtors® often get is “Where do we think the market is going to go in the New Year?” Unfortunately, that is anyone’s guess. However, given the factors that drive the real estate market – the economy, employment, interest rates, inventory and the like, and with all these factors looking positive heading into 2018, I’d expect we’ll continue to see improvement in both the housing and land segments of the market in 2018. My guess is we’ll see housing values increase in the 4% – 5% range, unless our inventory continues to decline, which could lead to larger increases. I’m sure we’ll see an influx of more homes listed come spring. As for the land segment of the market, I’m guessing that we’ll see continued improvement in land sales, chipping away at our excessive inventory. Whether values will move into positive territory, I’m not sure about; however, things are at least heading in the right direction. We continue to see more new and spec builds in Heber-Overgaard, two factors that increase the demand for land. Time will tell!
For home and land buyer or seller assistance, please contact one of our Dominion Group Properties’ Real Estate Professionals at 928.468.3232 or visit us at our Bison Ranch office in Overgaard. Learn more about us at www.dgp-az.com. We at Dominion Group Properties are Your Rim Country Real Estate Professionals!
(Source: WMAR MLS as of December 31, 2017)