As we move into February, the Mesa housing market remains steady with a moderate level of activity. While there are no signs of a rapidly heating market, demand continues at a healthy pace, and conditions remain balanced between buyers and sellers. Here's a closer look at the key trends for this month.

Market Health & Activity

• Pending Ratio: The pending ratio stands at 18%, indicating a moderate level of buyer activity compared to the available inventory. While not an overly competitive market, this figure shows that homes are still in demand, with buyers continuing to take action on properties that meet their needs.
• Days on Market (DOM): Active listings are averaging 75 days on market, while homes that have sold are seeing an average of 71 DOM. This close alignment suggests that pricing is generally realistic and homes are moving at a reasonable pace. Sellers are pricing properties in line with buyer expectations, ensuring that homes don’t linger unsold for too long.
• Months Supply of Inventory: At 3.3 months, the supply of inventory reflects a balanced market. This figure suggests that neither buyers nor sellers hold a distinct advantage, with conditions that favor neither party over the other. Buyers have options to choose from, while sellers can expect moderate demand for well-priced homes.

Buyer & Seller Behavior

• Seller Success: Sellers are, on average, achieving 98% of their final list price at sale. While buyers do have some negotiating power, this figure indicates that homes are selling close to the asking price, and heavy discounting is not widespread. Properties priced appropriately are still attracting interest and closing successfully.
• Sale-to-Original List Price: The average sale-to-original list price sits at 95.4%. This suggests that some price reductions are taking place before homes are sold, likely due to initial overpricing or cautious buyer behavior. It’s a sign that while the market is healthy, there’s still some adjustment happening with prices before homes find their buyers.
• Pending-to-Active Price Ratios: The ratio of pending-to-active prices is very close to 1, indicating that homes are selling at prices close to those of currently active listings. This balance means that sellers aren’t seeing major price inflation, nor are they having to drop prices significantly to attract offers.

Potential Market Directions

The Mesa market is maintaining steady conditions as we head into February. With inventory levels balanced and days on market remaining consistent, we’re not seeing any signs of a market overheating or a significant slowdown.

• What to Expect: If the pending ratio rises, we could see more competition and price stability. On the other hand, if the pending ratio falls or days on market increase, buyers may gain more leverage and have additional negotiating power.
• Key Indicators to Watch: Keep an eye on months supply and list-to-sale price ratios for early signals of any market shifts. These will help predict whether the balance between buyers and sellers starts to tip in one direction or another.

Advice for Clients

Sellers

If you're thinking of selling, it's important to price your home competitively. While negotiation may be part of the process, homes that are reasonably priced and well-presented are still seeing a good percentage of their final list price at sale. Keep your expectations realistic, and you can expect a successful sale.

Buyers

As a buyer, you have the advantage of having a reasonable selection of homes to choose from. While the market remains balanced, there’s still room for some negotiation. However, keep in mind that well-priced, desirable homes are selling steadily, so it’s important to act quickly if you find something that fits your needs.