By Mike Bodeen · 30 November 2020
Our land is famished for want of listings to sell. Regulars of Mike’s Monday Market Snapshot have known this for years as we’ve continued to report on this growing, or rather, diminishing problem.
A normal, balanced and healthy real estate market in the Phoenix Metro area would have 4 to 5 months of inventory at any given time. We currently have less than 4 weeks of available homes for sale – 27.8 days to be exact, according to the Cromford Report.
The other side of this coin is that if you look at today’s Cromford Index Market Dashboard above, you’ll notice the demand side is 35% above a balanced market.
The real world problem for Phoenician home buyers is that the available homes currently for sale are mostly more expensive than they want or can afford to buy. As our metro (and state) population continues to escalate, the average sales price hugely exceeds the rate of growth. Given that we might only be on the front end of this population explosion, which no one know really knows, what will values look like tomorrow, next year, 5 years?
And what about rentals? Equally famished! As of today, the monthly average lease price per square foot in the Phoenix Metro communities is $1.18. One year ago, on December 1st, this rental rate was $1.00 per square foot. Rents per square foot and home values are rising 18% annually.
You will note from the list below, that the available listings (not sales) from our Arizona Regional Multiple Listing Service, are well above most peoples ability to pay. These numbers are much higher than a year ago. We’re now seeing the top end of the market having unprecedented demand. Check out your city’s average list price:
“A normal, balanced, and healthy real estate market in the Phoenix Metro area would have 4 to 5 months of inventory at any given time… We currently have less than one month – 27.8 days…”
Paradise Valley – $4,269,814
Scottsdale – $1,986,268
Fountain Hills = $1,191,397
Cave Creek – $1,141,853
Gold Canyon – $823,082
Chandler – $720,865
Anthem – $676,483
Phoenix – $673,757
Gilbert – $665,072
Mesa – $613,602
Litchfield Park – $570,702
Queen Creek – $566,637
Peoria – $553,516
Tempe – $551,160
Buckeye – $477,365
Apache Junction – $453,180
Glendale – $445,598
Surprise – $439,235
Goodyear – $433,937
Sun Lakes – $421,418
Laveen – $395,686
Avondale – $356,111
Tolleson – $348,987
Sun City West – $341,342
Casa Grande – $318,329
Maricopa – $316,943
Sun City – $303,936
El Mirage – $280,075
Arizona City – $224,721
In an upcoming issue, we will address the reasons why our market is NOT in the same pre-foreclosure boat as 2005.
Market data referenced in this article comes from The Cromford Report.