Real Estate Trends, Market Update
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As of April 3rd, the number of available Single Family Detached homes in the Valley dropped by 4%, which is a significant change over previous months, to a recent record low of roughly 35,000 homes. The number of closings increased to nearly 7500 over the past month bringing the current inventory on hand to roughly 4.5 months. This is indicative of a Seller’s Market, not a buyer’s market.
The most amazing statistic of recent is the 10% increase in the number of pending sales on the market. People are buying, and it’s not the media. The media is still at least 2 months behind the curve, so if you depend on the media to make your decisions, you’re losing ground. Talk to a professional, or subscribe to my blog to stay on top of what’s happening NOW, not two months from now.
In Phoenix and the West Valley, we’re at a 3.25 months supply. Houses are selling like hot-cakes again. Does this mean it’s time to panic and make a poor financial decision about purchasing a home when you may not be able to afford it? Nope. It means that if you have the means to purchase a home, now is the time to do it.
The Scottsdale market, which has been extremely stagnant in the under $1Million market actually doubled the number of pendings. Paradise Valley, the pinnacle of ownership in Phoenix, is still holding at a 7 year inventory. Own a home in PV? You may own it for a while. Drop your price if you absolutely must sell. Closings should increase as pendings have increased, but those are the facts.
While it may be a good thing to hear the media spouting off about the improving market, most of what they tell you is outdated, and not represented well. Many statistics are taken out of context, and the underlying truths about what they’re telling you are never revealed.
Karl Stauffer reports the following statistics:
Overall Market. Inventories are down 4% from last week. Total of 35394 active listings with 7461 closings in the last month. About a 4 3/4 month supply.
Phoenix. Inventories are down 5% from last week. Total of 7880 active listings with 2140 closings in the last month. About a 3 3/4 month supply.
West Valley. Inventories are down 6% from last week. Total of 8482 active listings with 2218 closings in the last month. About a 3 3/4 month supply.
Inventories are down 2% from last week. Total of 5510 active listings with 354 closings in the last month. About a 15 1/2 month supply.
SE Valley. Inventories are down 3% from last week. Total of 8048 active listings with 1848 closings in the last month. About a 4 1/4 month supply.
Scottsdale over $1m. Inventories are down 2% from last week. Total of 1423 active listings with 36 closings in the last month. About a 39 1/2 month supply.
Scottsdale under $1m. Inventories are down 2% from last week. Total of 2419 active listings with 225 closes in the last month. About a 10 3/4 month supply.
ParadiseValley. Inventories are down 1% from last week. Total of 574 active listings wih 6 closes in the last month. About a 96 month supply.