January 2012 Market Report
Uncertainty because it is difficult, if not impossible, to have a clear picture of today’s market. National and even regional news only report on the big picture. And while the big picture matters to overall market confidence and conditions, to borrow from the old adage, all real estate is local. So what’s really going on in your neighborhood?
When looking at Cromford’s numbers it becomes apparent that the supply of luxury homes is still increasing but at a slower rate than in the previous two months. An increased inventory isn’t necessarily a bad thing, with the annual sales volume also seeing an increase over last year. Pending sales are lower than they were at the end of last year. Normally this wouldn’t be very encouraging, but it is a result of there being fewer short sales on the market which are tracked as pending – sometimes for months on end.
In other “Optimism, 2012” news, pricing for active listings is surprisingly robust with an increased price per square foot up 3.2% over last year. However, when looking at pending sales the price per square foot is down, and the annual average price per square foot has a slight uptick from a year ago to close out the year. Before calling it a come-back I’d really like to see pending and sales prices increase along with active listing prices. One last spark of good news is the improved contract ratios seen in certain areas, especially Arcadia and the McCormick and Gainey Ranch areas. Completed contracts compared to the number of active listings and are a good way to measure “what’s hot”. The slight dip across the luxury market last quarter is typical market activity over the summer and into fall. Compared to 2010 and especially 2008 and 2009, there is reason to be hopeful.
Hopefully this helped shed some light on the uncertainties in our market and provided a little peace of mind. If you would like further or more detailed analysis of your specific property, please call our office today.
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Executive Sales Associate
Keller Williams Northeast Reality
2005 W. Happy Valley Road Ste 150
Phoenix, AZ, 85027
Phoenix, AZ, 85027