What a difference a year makes!
What a difference a year makes!
It seems like many peopel are never happy. In real estate that especailly seems to hold true. First I hear complaints about prices dropping. Now a few years later prices are rising and invetory has fallen. So, the complaint now is it is hard to find a home. Inventory levels are low, but there are still many choices out there. It's just that there is also a lot of competition for that inventory.
The big drop in inventory really occured over 2010-2011. We have seen continued strengthening in the market, but the sale price appreciation didn't really kick in until inventory levels settled under $20K units. In the chart below you will see that in the first quarter of 2013 compared to the first quarter of 2012, sales increased roughly 10%, while inventory dropped about 9%. Overall supplies of inventory dropped significantly in all price categories except for $3M+. In the Phoenix market, a balanced market is considered to have 3-4 months worth of inventory. In price points below $500K (the majority of the market) inventory is sitting in the seller market range. Many properties are selling with multiple offers. Statistics in the chart were obtained from ARMLS STAT+ report.
Q1 2013 Vs Q1 2012
Avg /Mo Solds Avg/Mo Actives
Q1 2013 /2012 Q1 2013 / 2012 Q1
DOM Q1 MSI % change Y2Y
Price Range
30,000-100,000 1305 / 1910
1470 / 3688 71 / 80 1.13/ 1.93 - 41.5
100,001-250,000 3779 / 3167
7792 / 7870 65 /82 2.06 /
2.49 - 17.3
250,001-500,000 1358 / 846
4594 /4189 81 / 105 3.38 /
4.95 -24.6
500,001-750,000 215 / 154
1239 / 1175 111 / 131 5.75 /
7.63 -25.6
750,001-1,000,000 69 / 49
694 / 666 139 / 196
10.10 / 13.59 -21.6
1,000,001-1,500,000 46 / 34 505 / 479 141 / 257 11.05 / 14.09 -21.6
1,500,001-2,000,000 20/ 12
315 /302 217 / 393 15.73 /
25.17 -37.5
2,000,001-3,000,000 8 / 7
256 / 286 264 / 196
33.43 / 40.86 -18.2
3,000,001 and up 4 / 4
242 / 210 262 / 402
60.58 / 52.50 15.4
Adam Tarr PC
Citywide Real Estate
Phoenix, AZ
480-236-7374