Average Sales Price for Phoenix Homes Stable and Climbing

Here’s the latest Phoenix real estate market report from The Cromford Report™ which includes some very positive info on sales prices. Stable below $300,000, and on the rise in higher price ranges.

Cromford Report – Monthly Market Review – Jun 28, 2011

Market Headlines

Supply continues to fall, though rather more slowly in the ranges between $200,000 and $800,000.
Demand very strong below $200,000 but showing seasonal weakness above $200,000.
Average sales price per sq. ft. is stable below $300,000 and increasing above $300,000.
A change in the sales mix could adversely affect overall market average prices and medians.
Foreclosure activity declining and active REO inventory is at the lowest level for several years.

Homes under $100,000

Demand remains strong while supply is still declining. Prices now stable for 7 months.
Demand normally falls off during the summer but the demand in this price range is dominated by intense buying by investors who are only slightly affected by the seasons.
Active listings are now 7.8% below this time last year.
This supply continues to gradually shift away from REOs (down 15.7% in the last month) towards short sales and pre-foreclosures.

Homes Between $100,000 and $200,000

Supply down and demand fading slightly. Pricing remains very stable.
Having peaked in October, supply has fallen another 6.8% in the past month and is down 23.4% when compared with March.
Demand has faded a little, but this is in line with normal seasonal patterns.
REOs dropped to 38% of monthly sales while normal listings also fell to 38%. Short sales and pre-foreclosures increased from 21% to 24% of sales.

Homes Between $200,000 and $400,000

Buying interest falters a little although supply continues to decline. Pricing remains very stable.
The supply of single family homes dropped by another 4.1% between May 26 and June 26, and is now down 17.0% over the last three months and 29.2% over the last year.
Over the last month REO supply actually rose by 2.4% reversing an 8 month trend, while short sales and pre-foreclosures fell by 3.0% and normal listings fell 5.5%.

Homes Between $400,000 and $800,000

Supply falling but demand continues to weaken. Nevertheless sales prices remain on an upward trend.
Single family homes between $400,000 and $800,000 have experienced a 6.4% fall in active listings in the last month.
The sales volume strengthened slightly in June, with monthly sales up 7.0%.
REO supply didn’t change during June at 84 homes, but this is down 10.6% over the last 3 months.

Homes over $800,000

Demand weakens for the summer months but supply is down again. Sales prices continue to climb.
We see the first sign of the spring season turning to summer as pending sales start to fade.
The good news is that the supply of homes above $800,000 fell 8.5% in one month, 18.9% over three months and 29.2% since June 2010.
Active REOs rose 18.4% from 38 to 45 over the last month but these represent only 2.9% of total active listings.

For the full report: Cromford Report – Monthly Market Review – Jun 28, 2011

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