If you’re reading current local real estate news reports regarding home sales and price increases of those sales, you’ll see it being lackluster at best. As we’ve been reporting recently however, sales are trending upwards based on Pending Sales, which are the most accurate current sales evaluation we can work with. Appraisers only use closed sales for their evaluations. Some Realtors who are using Cromford Report-like data such as we’re using, have the flexibility of real time analysis.
If we compare pending homes in the Greater Phoenix Metro area, (excluding distressed properties) we’re finding significant sales increases compared to the same period of time last year.
With just a few exceptions, most price ranges are showing strong year to date sales increases with the largest percentage increase being in the Luxury Market $3,000,000 plus category.
When homes are trending well for sellers, they’re trending downward for buyers. Sales prices are starting to rise again. Buyers will be getting less house for the money and that seems to be across the price spectrum.
Interestingly enough, two of the lowest sales price ranges are under $125,000. The reason for that is that these price ranges have much fewer homes for sale this year versus last. (See the Cromford generated chart below)
The highest priced sale this year in the Phoenix Metro area is $8,000,000. There are currently 31 homes listed for sale above this amount, the highest being priced at $32,000,000.
So what’s our takeaway? Same-ole that we’ve been saying for quite a while now. When homes are trending well for sellers, they’re trending downward for buyers. Sales prices are starting to rise again. Buyers will be getting less house for the money and that seems to be across the price spectrum. It looks like buyers are catching on and that’s a good thing!
Check out the Chart below to get a good idea as to our changing market:
|Rank||Price Range||Under Contract 3/18/14||Under Contract 3/18/15||% Change|
|1||$3M and over||11||25||127%|
|2||$350K to $400K||392||593||51%|
|3||$225K to $250K||594||869||46%|
|4||$250K to $275K||441||613||39%|
|5||$175K to $200K||822||1,137||38%|
|6||$300K to $350K||537||717||34%|
|7||$200K to $225K||594||793||34%|
|8||$150K to $175K||890||1,184||33%|
|9||$275K to $300K||450||589||31%|
|10||$600K to $800K||220||285||30%|
|11||$400K to $500K||465||601||29%|
|12||$500K to $600K||225||283||26%|
|13||$125K to $150K||927||1.148||24%|
|14||$1M to $1.5M||109||125||15%|
|15||Up to $100K||602||620||3%|
|16||$100K to $125K||559||567||1%|
|17||$2M to $3M||38||38||0%|
|18||$1.5M to $2M||54||53||-2%|
|19||$800K to $1M||124||115||-7%|
Thanks again to Michael Orr (Cromford Report) of the ASU School of Business and Real Estate for permission to provide you, our clients, with this excellent information found nowhere else in such clarity and detail.