Scottsdale home condo are starting out 2009 in a real estate market that is tilted in their favor. Not quite to the extent that single family homes are, but none the less, a buyer’s market.
In the following charts, I’ve shown prices for both 2007 and 2008. Listing prices started dropping off in fall 2007, and continued until mid-summer of 2008. After a sharp increase in the fall, list prices are now comparable to the same time last year.
Median List Price Comparison 2007-2008 (Click to see larger chart)
What is clear is that even with the declining prices, average time to sell is still climbing steadily.
Days on Market Comparison 2007-2008 (Click to see larger chart)
Inventory (the number of homes on the market) grew in 2007, with a small fluctuation in late summer / early fall. While inventory continued to increase in 2008, the same late summer fluctuation was evident.
Finally, you will see that while the Scottsdale area approached a more balanced market in the spring of 2007, it quickly changed into a very strong buyer’s market. That buyer’s market has continued through 2007 and 2008. In the early fall, it appeared that the market was improving, but that trend has been short-lived.
Condo Market Action 2007-2008 (Click to see larger chart)
We shall see what changes the new year brings.
See yesterday’s post for the single family home report.
Definition of the Market Action Index, courtesy of Altos Research:
The Market Action Index (MAI) illustrates the balance between supply and demand using a statistical function of the current rate of sale versus current inventory. An MAI value greater than 30 typically indicates a “Seller’s Market” (a.k.a. “Hot Market”) because demand is high enough to quickly gobble up available supply. A hot market will typically cause prices to rise. MAI values below 30 indicate a “Buyer’s Market” (a.k.a. “Cold Market”) where the inventory of already-listed homes is sufficient to last several months at the current rate of sales. A cold market will typically cause prices to fall.
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Scottsdale Condo Sales – Comparing 2008 to 2007. http://is.gd/epei
Love your reports. I’ve been after Altos for a year but my area is not in their ‘territory’ yet. You do a great service providing your readers with such great information and numbers.
Thanks, Susie. I do hope Altos expands into your area soon. The information that they provide, and their customer support has been excellent.