Archive for At large

Jul
03

Phoenix real estate market early July

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Market summary courtesy Michael Orr of The Cromford Report early July 16, with a few points highlighted in blue:

“The market conditions improved a little for sellers during June, with the Cromford® Market Index breaking through the 140 level as we enter July. However there is no dramatic new trend, just a continuation of what we have been seeing for several months now. Sales volume was strong during June but it is clear that July will be much quieter for closings since the number of homes under contract has fallen quite a bit. This is quite normal for the season.

The ranges from $200,000 to $350,000 saw strong growth in closed sales over June last year – up almost 19%. Between $350,000 and $400,000 we saw a little weakness, down 2%, but sales from $400,000 all the way up to $1.5 million were strong – up an impressive 21%. Sales over $1.5 million were very much weaker than last year – down 44%. Sales below $175,000 were also well down, but this was caused by a lack of supply. The segment over $1.5 million cannot use that excuse. There are plenty of homes available, even though a large number have been removed from the market for the summer. Many of these are likely to be relisted at the end of September.

At first sight it looks as though pricing was strong during June, with the median sales price up 2.2% from last month. However this is deceiving because the average home price only rose 0.3% and the average home size jumped 1.3% from 1,978 in May to 2,004 in June. The average price per square foot retreated 1.0% over the month, and we see this as more accurate measure than the median sales price.

We expect overall prices to be flat to slightly lower over the next 3 months as luxury homes make a smaller contribution when the temperatures exceed 100 degrees. Prices are still rising below $200,000 and falling for most homes over $1 million.

Dollar volume in June was a healthy $2.529 billion, up 7% from June 2015, with about half of that coming from higher sales volume and the rest from higher pricing.

The main difference we saw between May and June was an improvement in demand for homes in the lower ranges of the luxury market, between $500,000 and $1.5 million. In particular:

  • $500K-$600K saw an increase of 30% in dollars spent (compared with June 2015)
  • $600K-$800K saw an increase of 20% in dollars spent
  • $800K -$1M saw an increase of 24% in dollars spent
  • $1M-$1.5M saw an increase of 27% in dollars spent

There is a big contrast above $1.5M:

  • $1.5M-$2M saw an increase of 2%
  • $2M-$3M saw a decrease of 41%
  • $3M and over saw a decrease of 61%

Mind you, June 2015 was a very good month for the super-luxury market so the comparison is quite tough for June 2016.”

Please call or email if you want to know how your house or potential purchase fits in with the current market.  Happy 4th!

Mar
08

Differing Conditions within the Market

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The performance in the Greater Phoenix real estate market varies significantly across the pricing spectrum.

If you are listing a nice 3 bed 2 bath home, priced reasonably well, within the $250,000 range, you can expect to sell quickly, with possibly being able to choose among several offers.   This is because there isn’t enough inventory to satisfy the high demand from the  first time buyers, budget buyers, and investors.  The low end of the market ($250,000 and lower) is very much a seller’s market.

If you have a home in the mid ranges ($250 to $500k) demand (buyers wanting to buy) is much higher than this time last year, but supply is also up.  This is the most “balanced” range within the market – lots of choices for buyers, but selling at reasonable rate if you are a seller.

While there are segments within this range (a $2.5m property has significantly different market conditions than a $700k home), the market for properties priced above $500,000 is swimming in vastly different waters than the low end market.  Supply is high, and higher than a year ago. Sales have climbed, but not enough to soak up the increased inventory.  Price reductions are common, and conditions are tipped toward strength in buyer negotiations.  In fact, appreciation in the highest ranges is in negative territory compared to this time last year.  In simple terms:  for most areas,  the upper range is a buyer’s market.

How does your home stack up in light of this market backdrop?  How can you make the most of these conditions? Call or email and we can discuss!

 

Visit houselogic.com for more articles like this.

Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

Categories : At large, Home Care
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In the shadows? For a couple of years some pundits have stated that many banks are sitting on untapped stores of houses, that once released to the market for sale, may topple a recovering market.  Other economists have argued that the estimated “shadow inventory” is overstated.   This month Kiplinger News reports in Housing Market Indicators Improve that the number of homes not yet foreclosed on has declined for the 5th month.  This is at least one indication that while things may not be improving at a fast clip,  significant further deterioration may be avoided.
 
 
 
 
Categories : At large, Market Trends
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