Price per Square Foot of Sold Houses Down 4% in 1 Month in Phoenix
Price per Square Foot of Sold Houses Down 4% in 1 Month in Phoenix
Updated the long-term monthly graphs.
John in the News
Wow! After getting quoted in Newsweek and Business Insider last week, I got quoted in Fortune and Seeking Alpha this week! Real estate must be THE story nationally right now.
Price per square foot down a “massive” 4% from June 15 to July 15
Mike Orr at The Cromford Report.
“For the monthly period ending July 15, we are currently recording a sales $/SF of $291.74 averaged for all areas and types across the ARMLS database. This is down a massive 4.2% from the $304.50 we now measure for June 15.”
“What really defeated our forecasting model is that sold prices went from 101% of list to 99.3% of list in just a single month. We have never experienced such a huge swing in such a short time before.”
Possible Small Rebound. Mike, however, expects a bit of a rebound in the next 30 days – average sold price per square foot +1.4% – because the average price of listings under contract on July 15 was a bit higher than on June 15.
However, I’m thinking that if the sale-price-to-list-price ratio continues to fall, that would lower sale prices more than expected. From 2014 to 2019 that ratio ran in the 96.5% to 98.0% range.
Inventory
The number of single-family, non-distressed houses listed for sale in the Phoenix MLS continues to skyrocket. At this rate, in a few weeks the number will be higher than anytime in 2018 or 2019.
The Tweet thread below is based on the latest monthly report on the Phoenix real estate market from the amazing Tom Ruff of “The Information Market.”
I got mentioned in Seeking Alpha!
Click on the graphs to go to the full-size, interactive version.
Let’s zoom in on New Listings and Solds.
This information can vary a lot in different parts of metro Phoenix. Your real estate agent can find the data for your specific city or zip code at The Cromford Report.