One of the phrases you often hear in real estate is “Location, Location, Location“, and that it means everything. Equally important is “Price, Price, Price“.
This chart tracking “Months Supply by Price Range (Based on Sales per Month)” is one of my favorites to monitor “the speed of real estate” in Phoenix.
Just a couple months ago, it was a Seller’s Market for homes priced $275K and under, and today, only homes priced under $75K have less than five months of inventory. (Inventory is number of houses on the market, divided by rate of monthly sales.)
We are now seeing a Balanced Market for homes priced between $75,000 and $400,000, where there are an average of 5-7 months of inventory.
Over $400K, there’s been some improvement in the $500-800K price range, although higher price points are still looking at a year and more of inventory. The more inventory, the more competition sellers have, and it’s easy to expect prices to decline further in these upper ranges. Scottsdale’s real estate prices average higher than the rest of Phoenix Metro (with the exception of Paradise Valley), so presumably will feel this impact more than most cities.
Bottom Line: In today’s market, the Seller advantage at the low end of the market is decreasing, and the balanced market, that will begin to signify that we are approaching some sort of equilibrium, is expanding. While there is some improvement at certain price points in the luxury end of the market, it’s still very much a Buyer’s marker.
Prior Posts on Phoenix Real Estate – Housing Inventory Levels:
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