Courtesy of Barb Savoy-Pacella, ABR, CHMS, CEO ~ Keller Williams Arizona Realty
The Cromford Report, which analyzes MLS data and trends in Maricopa County, is making some BOLD predictions, fueled by continued positive indicators in the market data.
To begin, sales for the month of November were up 8% over the same time period last year; additionally, active listings are down 41%. The listing success rate (the number of homes that come on to the market and actually sell, rather than resulting in an expired listing) has increased 15% over last year.
The big news continues to be in foreclosure inventory (or lack thereof ), equity listing inventory, and pricing. The shift in inventory is finally equating to a shift in pricing. As we have observed over the last 120 days, foreclosure inventory has been on a sharp decline. The good news is that the declining foreclosure inventory has made way for an increase in equity sale inventory, which of the three segments of market inventory (foreclosure, short sale, or equity sale), has the greatest strength in pricing. The overall result is an increase in the average price per square foot.
The overall, average price per square foot valley wide has increased 6.5% in the 91 days between September 1, 2011 and November 30, 2011. Additionally, the month over month increase from October to November was 3.1%.
The two cities showing the greatest price per square foot increase over the past year are Fountain Hills at 14.8% and Paradise Valley at 11.9% (sort of shatters the myth that the luxury market is struggling).
The two cities showing the least gain in price per square foot over the past year are Sun Lakes at -14.3%, which is surprising, since typically the 55 and over communities weather market trends with less distress; and Litchfield Park at -8.5%.
Listings Pending Sale are up again this weekat 10,441. That is an increase of 244 pending sales when compared to last week, and unusual for our typical seasonal market. Listings that are active with contingencies account for an additional 7,345 properties.
Current Conditions in the Phoenix Market:
- There are 15,173 single family detached listings, currently active in MLS. That is a decrease of 9 listings over the past week. We have been watching for the typical, seasonal inventory swell that usually begins in mid September to early October, and we have not seen it yet.
- There are 19,395 total listings currently active in MLS, which includes condos, patio homes, townhomes, and lofts.
For additional information, or to view homes for sale, please visit our web site at www.PacellaGroup.com
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