I have been discussing the subject of market trends with a few fellow Realtors, buyers and investors; as a direct result I've decided is time to get some facts ready that will give everyone a clear picture of the Phoenix Metro Market now !
Last year ( beginning of June) the market varied depending on the price point with low end being very hot and high end still taking a hit and the trend is likely to continue this year.
Here is goes:
- Inventory below $ 200K is low (a five month supply of only 19,027 units to include SFR and condos/ town homes) and prices are rising. The City of Phoenix in itself has less than 5000 active listings. INVESTORS AND FIRST TIME HOMEBUYERS TAKE NOTE OF THAT
- Market less than 100K has only a 90 day supply. (4616 single family units and 7,559 total including condos and town homes in the Phoenix Metro) only 1,684 single family homes in THE CITY OF PHOENIX. Most sell over the asking price by 5 to 10%. I have seen even higher with homes that are in very good condition.
- Up to about 400k the market is almost perfectly balanced (a 7.4 month supply) - with no price movement in either direction. 7,897 units to include SFR and condos / town homes
- 400 - 500k has a 9.5 month supply valley wide, with slight downward pressure on prices. ( 1,569 units total )
- 500 - 800k has a 13.7 month supply, with depreciation still on the near future ( 2,209 total units )
- Homes above 800k have almost a two years supply ( 2,173 units total )
- 2 + million price range : a six and half years supply.!!!! ( 789 units:) So the rate of decline isn't easy to even predict here.
Your offer should be based on the value of the home. Value is best determined by a specific supply/demand analysis on the exact neighborhood and type of property you are looking to purchase.
If you'd like more specific information please don't hesitate to call me or email any time. You are also encouraged to visit my web site and use it to search for homes direclty with no sales presure.
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