Just in the last 4-5 weeks we found ourselves swamped: listings, buyers, lots of activity.
Something about the impending cooler weather gets people’s juices flowing.
That activity is born out in what the Big Brains™ at the Cromford Report are seeing in their tea leaves.
“For the monthly period ending September 15, we are currently recording a sales $/SF of $139.28 averaged for all areas and types across the ARMLS database. This is up 1.1% from the $137.83 we now measure for August 15.”
It is interesting to note that, despite the strong seller’s market, the active list prices are still a little bit above the final sold price. “On September 15 the pending listings for all areas & types shows an average list $/SF of $146.50, up 0.6% from the reading for August 15.”
That means that properties sold for about 6% less (in PPSF) than what they were listed for. That’s expected as people negotiate prices. Further, these numbers are from all areas. So, you may not see that drop off everywhere.
That’s good news for buyers. Even in this strong market, it does not hurt (unless you know there are other offers coming in) for you to try to slice a little off that price.
Its also interesting to see that the distressed sector of the market is back to pre-recession levels. “Among those pending listings we have 92.4% normal, 2.8% in REOs and 4.8% in short sales and pre-foreclosures.”
In other words, no, there really are not many distressed properties out there anymore –he says for the benefit of those who call him every few weeks asking if they can find a foreclosure to purchase for half the going market rate for homes.
The Crazy Cromford Calc Crew™ is predicting slightly higher prices still in October. “Our mid-point forecast for the average monthly sales $/SF on October 15 is $140.36, which is 0.8% above the September 15 reading. We have a 90% confidence that it will fall within ± 2% of this mid point, i.e. in the range $138.27 to $143.91.”
Again, this is county-wide. It could be higher or lower, depending on the area.
The nice thing is, dear reader, that your Get Your PHX Team really knows the neighborhoods. So, we can help you take advantage of these trends, regardless of whether you are buying or selling.
Contact us for more at 602-456-9388.