In our ongoing effort to post consistent and timely Phoenix housing 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 my last housing market update from July, “Phoenix Housing Market Update – July 31, 2012.”
Average Home Sales Price
As I predicted back in July, the demand for housing has softened slightly and the monthly gains on the average home sales price have slowed over the last four months. Fortunately for sellers, the average home sales price still rose during that time by almost 4% from $197,897 to $205,435, but fortunately for buyers, the rise wasn’t as sharp as it was earlier this year when the average sales price was spiking 9% – 10% month-over-month. If the number of sales per month declines again in December and January as it usually does every season, buyers should notice slightly less competition for the homes they want to bid on, but sellers should still be able to sell their homes 25% – 30% higher than they could have this time last year!
Number of Houses for Sale
Although the number of houses for sale has risen by almost 33% since July, and increases in supply are often poor economic indicators, I believe our market needed the additional inventory. Now, with over 18,000 Active listings to choose from, most of our buyer-clients have an ample number of homes to tour with our Buyer’s Agents and, often times, they have the ability to negotiate their sales prices rather than simply accepting a seller’s full list price. And no, the new listings weren’t all part of some shadow inventory of bank-owned homes. In fact, if you take a look at the chart below, you’ll see that the number of foreclosures is still plummeting, quarter after quarter – so much so that we’re already seeing numbers we haven’t seen since 2007! Yahoo!
**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 a message on our Contact Us page, or give us a call the old fashioned way! We would love to hear from you.**
Source: The Cromford Report