What did the Phoenix residential real estate community learn from 2009? Sometimes I still look back and try to glean something new from the blur of a year that was 2009. A lot of homes were sold, so with a data pool that large, there are plenty of statistics still to dissect.
As a REALTOR who represents home sellers often, and a fellow real estate investor, I’m always trying to get into the mind of a typical Phoenix home buyer. So, after reviewing the chart below from The Cromford Report earlier today, one statistic jumped out at me: Average Square Footage. From 2008 to 2009, a period of time when the sales of townhouses and condominiums nearly doubled, the average square footage of homes sold remained virtually THE SAME! In a year when the average price per square foot fell by 30%, the average square footage of homes sold held nearly constant.
This may seem like a straight-forward observation, but if you’re a real estate investor, this is paramount. Home buyers may be looking for lower priced homes these days, but that doesn’t necessarily mean they’re willing to compromise on the size of the home. How can you attract more buyers to your recently renovated home? Stainless steel appliances stuffed into 995 square feet might not cut it anymore. Start by offering them the square footage they need.