Days on Market – CenPho

Our friends at the Cromford Report did a little analysis recently of days on market (DOM) over the last 90 days. They showed zip code 85004 with an incredibly low DOM, at 19.

To quote:

Today we look at those zip codes with the lowest Average Cumulative Days on Market for sales of Single Family Residences sold in the last 90 days since June 21st, 2015.

All of the zip codes depicted in the map below had an average CDOM of less than 60 days. The CDOM is the count of days from the time a listing goes active in the MLS to when the status is changed to Pending (not UCB). Many people are placing their listings in UCB status instead of Pending in order to continue marketing them on sites such as Zillow. The UCB status keeps the CDOM counting, while Pending will stop the count. As a result of this behavior, many of our “Fastest Selling” zip codes show a higher CDOM measurement than one might expect. In fact, many of the listings in these areas saw an accepted contract within hours of going active.

Area                                       Zip Code          Avg CDOM for SFR sales last 90 days
Central Phoenix                  85004                19
South Phoenix                    85040                 32.9
El Mirage                             85335                 40.7
West Phoenix                     85027                  42.1
South Phoenix                    85009                  45.5
Youngtown                         85363                  46.6
West Phoenix                    85053                   47.3
West Phoenix                    85019                   47.6
Tempe                                 85282                  48.4
West Phoenix                    85037                   49.1
West Phoenix                    85031                   49.4
Mesa                                    85210                  49.4
Glendale                            85304                   50.7
Mesa                                   85202                  52.1
Chandler                            85224                  53.1
Mesa                                   85201                   53.7
Gilbert                                85233                  55.1
Avondale                            85392                 55.2
West Phoenix                    85023                 55.3
Glendale                             85302                 56.8
Tempe                                 85283                 57.1
North Phoenix                   85024                 57.3
South Phoenix                   85042                 57.5
Mesa                                    85204                57.5
Gilbert                                 85295                58.6
Tempe                                 85281                 58.9
West Phoenix                     85051                59.2
Scottsdale                           85251                 59.4
South Phoenix                   85043                59.5

But, that 85004 zip code really seems like an outlier for some reason. If you look at the zip codes that primarily house the historic neighborhoods in CenPho, the picture looks more like this:

  While the number jumped in March, they are generally dropping and hovering around 80 days. Part of this is because, as Cromford said, the way agents classify UBC vs. Pending changes the count. But also I think it is true that homes even in the popular CenPho and historic areas are on the market for this long. Sometimes the sellers list too high, thinking they will get more than they can. Sometimes people over-value a home that needs renovation.

Regardless, if inventories don’t increase, we can expect average days on market to decrease in CenPho.

If you need help building a strategy for your purchase, please give me a call at 602-456-9388. We specialize in this area and we can help you make the right move.