Market Update – Week of July 12th
The number of detached single-family homes on the market in the Valley:
- As expected, available homes increased again this week coming in at 5,839 vs 5,462 a week ago – a 6.9% increase – larger due to less activity last week during the holiday.
- Under $1 million inventory increased as well with 4,804 vs 4,466 a week ago – a 7.5% increase.
- Under $500k inventory also increased with 2,787 vs 2,607 a week ago – a 6.9% increase
According to my friends at First American Title, the median home sold last week was on the market for the following:
- Anthem – 21 days (up from 14) – price per foot = $282 (up from 275)
- Cave Creek – 49 days (up from 35) – price per foot = $351 (Up from 326)
- Carefree – 49 days (up from 45) – price per foot = $425 (from 418)
- Phoenix – 14 days – price per foot = $269 (both unchanged)
- Scottsdale – 28 days (down from 35) – price per foot = $402 (up from 398)
The median numbers above represent a midpoint but home condition, upgrades and lot size, lot location and views all have a strong influence on value and can vary greatly. Upgrades include updated kitchens, baths, paint color, flooring and outdoor space amenities which often have major influence on values as well.
What does this mean?
Homes are still selling very quickly with the best homes continuing to sell within a few days but below average homes are starting to take longer to sell. Although the inventory is continuing to grow, we are still far from what our “normal” inventory level is in the valley and multiple offers are still most common. However, as we go forward, there will likely be a larger gap in pricing between the best homes and the below average homes (less updated and/or less popular lot locations). This gap will allow investors/flippers to have more room to work with to improve homes and still make a profit. A large percentage of homes I see need some kind of updating – not to make them livable but to make them more “current.” An updated home almost always brings in more interest from buyers and a higher sales amount for sellers.