MARKET DATA & PHILANTHROPY          |          TESTIMONIALS


Monday, September 25, 2017

Active Listings Between $150K-$175K rise 17% since June

Has the Phoenix Real Estate Market Recovered?

For Buyers:
Supply between $150K-$200k continued rising in August.  However the $150K-$175K range had a more dramatic rise.  While still 26% below last year, it rose 17% since the beginning of June, a strong departure from the weekly decline this market experienced in the first half of 2017.  For buyers in the rest of the market over $200K, nearly all price ranges are running lower than last year with the exception of the top tiers.  For those buyers who have seen every listing available and still haven’t found a match, late September usually sees an increase in new listings across the board.  This makes the 4th quarter a good time to be a buyer.
For Sellers:
When do we know the Phoenix residential real estate market has “recovered”?  Many people assume when prices have returned to 2006 peak levels then the market has recovered.  However understandable, especially for those who purchased during that time frame, that’s not necessarily the case.  Average sale prices per square foot are still 27% away from the peak of 2006.  However, the market could arguably be considered recovered once prices reach the range that corresponds to the long term average rate of inflation, which from 2000-2016 in the United States is 2%.  In 2000, the average sales price per square foot for MLS resales was $96. Had the bubble and crash never happened, and annual appreciation stayed between 2-3% per year as normal, then prices would land between $134-$158 per square foot today.  Currently they’re running at $149, which equates to averaging nearly 2.6% annually and a 55% total gain since the year 2000. .



Commentary written by Tina Tamboer, Senior Real Estate Analyst with The Cromford Report
©2017 Cromford Associates LLC and Tamboer Consulting LLC

Friday, September 1, 2017

Real Estate Market Update - August 2017

Active Listings Between $150K -$200K Rise 10% in 4 Weeks


First-Time Home Buyers Get a Boost
For Buyers:
We have good news for first-time homebuyers!  A 10% rise in active single family homes between $150K-$200K over the last 4 weeks caught our eye.  Seasonally we expect supply to begin rising in late September, so a turn this early in the year is unusual. This price point has been decreasing nearly every week since November 2016 and is highly competitive amongst buyers and investors alike.  Listings appear to be growing the strongest in Pinal County and the West Valley, particularly noted within the freeway loop of I-17, I-10 and the 101.  This provides some slight relief for buyers, but put it in perspective.  Today we counted 1,361 single family homes listed for sale between $150K-$200K and there were 1,311 sold last July.  Listings under $200K make up 17% of inventory and 35% of sales so far this year.  The market is still very tight.
For Sellers:
The 10% rise in competition for the single family market between $150K-$200K equates to an extra 137 listings for buyers to view. Glendale, Peoria, Avondale and West Phoenix accounted for 60% of the increase while the City of Maricopa and San Tan Valley accounted for another 38%.  Weekly price reductions in this price range have risen 60% in the month of July and 40% of the sales over the last 4 weeks have involved seller-assisted closing costs.  Supply in this segment is still 23% below where it was last year, providing sellers a large negotiating advantage.  However, the gap between 2016 and 2017 supply has closed 8% in 4 weeks, indicating a slight softening.
Commentary written by Tina Tamboer, Senior Real Estate Analyst with The Cromford Report
©2017 Cromford Associates LLC and Tamboer Consulting LLC