In an ongoing effort to post consistent and timely real estate market updates, here below is a Concise Market Snapshot from The Cromford Report, and my own short commentary afterward. This snapshot has been re-posted with permission from The Cromford Report.
Since the last time I posted this real estate update on June 22, 2011, a lot has happened! The number of houses for sale has fallen by almost 10%, the sales per year pace has increased from 94,547 to 98,371, the average days on market for a home sold decreased, and yet the average home sale price has continued to drop.
Why do I continue to report on the number of houses for sale?
Think of the number of homes for sale as Phoenix’s “supply” and the number of sales per year as the market’s “demand” for homes. As a buyer, Phoenix’s decreasing supply means you have fewer choices today than you did last month, last quarter, and last year. If you are ready, willing, and able to buy a home, I recommend starting your search today before your selection decreases any further. As a seller, Phoenix’s increasing demand means you have a higher likelihood of selling your home today – 71.8% chance – than you did last year – 57.3% chance. If you need to sell your home this year, I recommend you consider putting your home on the market now before demand begins to dwindle as it typically does in the fall months here in the Phoenix area.
No, we haven’t noticed an increase in average home sale prices yet, but here’s what we have noticed.
1. The average list price per square foot has increased from $130.97 last year to $134.42 today. Home sellers are obviously sensing the market’s increased demand, and expecting to sell for more than they could have last year.
2. The average sales price to list price ratio is up from 95.82% last year to 96.67% today. Home sellers are also sticking closer to their list prices than they were just six and twelve months ago.
What do you think about the changes in the Phoenix real estate market this summer? Have you noticed any other changes I didn’t mention above? If so, leave me a comment below!
**If you would like a chart, similar to the one above, prepared for your own city or zip code within the Greater Phoenix Area, just post a comment below, send us an email, or, give us a call the old fashioned way! We would love to hear from you.**