Are Home Prices Up, Down or Flat in Arizona?

August 7, 2011 at 2:56 pm Leave a comment

When a market is attempting to recover from a long and disastrous plunge, there are plenty of conflicting signals:

Signs That Prices Are Going to Go Down•The average list price per square foot for pending listings continues to drift downwards, down 1.5% in the last month.
•The average asking price per square foot for normal listings has fallen by 1.6% in the last month.
•Monthly average sales prices are reaching fresh lows.

Signs That Prices Are Going to Go Up
•The average asking price per square foot for lender-owned homes has risen by 7.4% in the last month.
•Sold price as a percentage of list continues to go up.
•Remarkably few listings are being canceled or are expired.
•Investors are now purchasing nearly 40% of the properties auctioned at trustee sales in Maricopa County.
•Average days on market for closed sales is coming down.

Signs That Prices Are Going to Stay Flat
•The average asking price per square foot for short sales and pre-foreclosures have barely moved in the last month.
•Median sales prices are essentially flat.
So you can take your pick. It seems to me that although the supply/demand imbalance is becoming extreme, demand from investors alone is unlikely to sustain a significant upward price movement. We may have to wait until the general public realizes the degree to which the reality and perception of the supply picture have diverged, so that fear of missing out on a bargain overcomes the fear of prices dropping yet further.

*Information taken from Cromford Report

Entry filed under: Arizona Real Estate, Chandler Real Estate, Foreclosures & Short Sales, Phoenix Real Estate, Real Estate Deals. Tags: , , , , , , .

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