Residential real estate in Metro Phoenix is still strong as compared to last year, but the subtle shift I spoke about last month is ongoing. Take a look at this infographic from the Cromford Report for a quick overview of the market and what Buyers and Sellers can expect in the short-term.
Weekly Price Reductions Up 14.7%
Supply of homes for buyers to choose from continues to creep up. This is most notable in the $250,000 to $400,000 price range where current levels are now very close to last year at this time. Supply between $175,000 and $250,000 is also rising and gaining on 2014 levels. This is good news for buyers and a relief after dealing with low supply conditions since March. Increased competition amongst sellers is beneficial for buyers as can already be seen in the number of weekly price reductions within the Arizona Regional MLS. Between May and August, the average number of weekly price reductions for listings between $175,000 and $400,000 were 1,015. Within the past 8 weeks, encompassing September and October, that number has increased to 1,164 per week, a 14.7% increase.
Supply under $175,000 is still well below 2014 levels, while supply over $400,000 is running higher than 2014 as it has all year.
While it may be disappointing to find out that competition is rising amongst sellers, the good news is that demand is holding steady. Listings in escrow between $175,000 and $500,000 are up 32.4% from this time last year and up 7.7% from just 5 weeks ago. Listings in escrow over $500,000 is declining seasonally, but is still 14.4% higher than this week last year. The added inventory has caused price appreciation to flatten out between $175,000 and $500,000. However over $500,000, added inventory and a 58.6% increase in the number of weekly price reductions since the end of June have resulted in a 5.2% decline in sales price per square foot.
Written by Tina Tamboer-Glatfelter, The Cromford Report