In our 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. For a frame of reference on this month’s numbers, you may want to take a quick look at last month’s post, “Phoenix Area Real Estate Update – December 7, 2011.”
No matter who we’re talking to, almost all of our initial conversations with new clients revolve around two main topics: the number of houses for sale, and the average home sale price. And, for good reason! They are two of the most important market indicators of supply and demand. Using the chart above, let’s look at these two statistics and how they’ve changed over the last month.
Number of Houses for Sale
At 25,275, the total number of houses for sale is approximately 1.5% lower today than it was on the same day last month. As inconsequential as that may seem, we are now hovering around the lowest total since October 2005. While some may call this a “supply shortage,” we must remember that many neighborhoods act independently of one another, and most price ranges (e.g., <$100,000, $250,000 – $350,000, $1,000,000+, etc.) do, too. In the Phoenix area, for example, some price ranges are averaging 33 sales per month, while others are averaging 750. This drastic difference in monthly sales is naturally going to have a greater impact on the number of houses for sale in certain price ranges more than others.
Average Home Sale Price
The average home sale price took a slight dip over the last month, but it is still higher today than it was last quarter AND last year. This is an important distinction to make, because the Phoenix real estate market often slows down during January and February. In this post last year, “Phoenix Area Real Estate Update – January 4, 2011,” I pointed out that the average sales price had fallen from December to January also. Despite this seasonal slide in pricing, I actually believe we’re going to see the average home sale price across the Greater Phoenix Area rise during the spring months of 2012 – especially on the homes priced below $350,000.
Have you noticed any changes to the real estate market in your own subdivision or community? If so, leave 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.**
Source: The Cromford Report