There is some great news for Arizona homeowners this month. As we have been suspecting for a few months now that home values are on the rise, we now have the statistics to back it up. Below is a bulleted summary based on Arizona housing information from the Cromford Report and other reports our team turns to for analysis and understanding.
· In every price range, sales prices in dollars per square foot are now higher than a year ago.
· Inventory is still falling below $200,000 and constraining sales volumes.
· Above $200,000, supply is rising and demand remains relatively weak.
· After a noticeable weak patch during the summer, prices have regained strength.
· Lender-owned inventory is falling fast, especially at the lower price levels.
· Short sales are overtaking foreclosures as the primary mechanism to resolve mortgage debt problems.
1. Homes under $100,000
Supply getting tight and now constraining the market. Prices are rising and are now 2.7% higher than last year. Home buyers and investors who are looking for the “great deal” are finding they are a bit late to the race. As we’ve mentioned in past articles, the below 100K market is extremely competitive with multiple offers common and final sales prices often above asking.
2. Homes Between $100,000 and $200,000
Supply lower and demand holding. Pricing is on a firm upward trend. Its amazing how supply and demand is often played out in the market… no wonder we base a lot of our opinions on this factor.
3. Homes Between $200,000 and $400,000
Summary: Supply is higher and demand is still unimpressive. Nevertheless, pricing remains extremely stable. We expect some rise in demand now that Fannie Mae has announced an increase in lending limits.
4. Homes Between $400,000 and $800,000
Supply is up only slightly and demand is stronger. Prices regaining ground lost in August and September. This is another price range we expect demand to increase as we move into our traditional buying season. Out of state buyers often purchase 2nd home or retirement homes in this higher price bracket.
5. Homes over $800,000
Supply is growing while demand remains below par. However prices remain remarkably stable.
Final Conclusions for November real estate market in Arizona
We can expect a slight downturn in market activity during the holidays… Traditionally, we should see an up-tick in sales as we approach mid-January and onward to June. If the Midwest has a particularly bad winter we can expect to see even more demand for Arizona homes.
If you’ve been thinking about selling your home, you may want to start getting your ducks in a row to take advantage of higher demand while interest rates remain at an impressive low… rates under 5% can’t go on forever.
If you’d like to know more about the market, have questions about buying or selling a home in the South East Valley we would love to be on your team. We bring over 30 years of experience to the table and simply love helping people have the most incredible real estate experience imaginable.