Yesterday, I shared a year by year sales history for the City of Phoenix, showing a record number of home sales, by month, in 2009.
Today, I’ll go through the same exercise, showing the dramatic changes over the past four plus years. The year 2005 showed some phenomenal changes in the average price per square foot for homes sold. The increase of an average of $120/sf to approximately $175/sf in an 11-month period was huge, resulting in appreciation that year of approximately 45%.
In 2006, prices (red) leveled off and remained in the range of $170 to $180 per square foot.
During 2007, prices (blue) remained plateaued around $180/sf, be midyear began dropping off.
By 2008, prices (olive) were depreciating at an even faster rate than they’d appreciated at 3 years earlier.
Prices in the beginning of 2009 (gold) continued the decline, but appear to have stabilized of the past couple of months.
I think what is most surprising to me here is that prices have not started increasing. With the dramatic increase in sale we’ve seen in 2009, it seems that prices would have stabilized more quickly and even started appreciating.
Summer will be very interesting this year. Will sales continue at the level we’ve seen so far this year? What about prices? What do you think?
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