04 Sep Market Update
Arrowhead Ranch Market Update
As I spoke about in the last newsletter, we do tend to see dips and peaks in the Price/SF on a monthly basis but once again the driving force behind prices is inventory. The number of Active listings at the end of June was 14,450. Math shows it would take just 53 days to sell all the currently active listings. Limited inventory’s effect on the market is very strong in greater Phoenix. In fact it is one of the lowest inventories in the country. This is what is putting an upward pressure on pricing, making it very favorable for sellers. We have just 2.2 months of supply.
According to Michael Orr, of the Cromford Report, the housing market will continue to recover for several years due to the chronic lack of supply caused by 5 years of very low home construction. Only builders can create significantly more supply. When homeowners or investors sell it usually involves a home that is occupied. Unless those occupants are moving out of state, it does not create new supply. It only adds 1 to supply and 1 to demand. The net effect is zero. Phoenix still sees a large number of people coming to the valley who are moving here from somewhere else…they add 1 to demand and 0 to supply. In 2013 we have tight credit and the longest period of under-building in memory. This makes the situation completely different despite the similarity in price action.
**Arrowhead’s real estate market continues to chug along at a strong pace! I think you would even be surprised to find out what your home is worth. To price property accurately I use guidelines I learned from appraisers. After I find a legit group of comparables I adjust it according to market trends. It’s why I am able to tell homeowners their values within 2% of the actual sales price prior to it selling. Visit www.ArrowheadRanchHouseValues.com for a complimentary home valuation.