Is the Phoenix Real Estate Market Overcompensating?
October 20, 2008
Greater Phoenix average price has retreated back to 2003: before the run up.
As with many things in life we tend to over compensate and this may well be happening right now. The Cromford Report has reported that the "average (price per square foot) had rolled back 5 Years.
On Saturday October 18, 2003 the average $/SF across all areas and types of homes was $108.89.
On Saturday October 18, 2008 the average $/SF across all areas and types of homes is $109.99.
A strange coincidence that these prices should be just 10c apart. On May 31, 2006 the same statistic reached $189.66, some 74% higher than today.
In some areas prices are in 2001 territory and in others in the last century: prices in some areas of the Phoenix valley are below replacement cost, a very important sign.
It's another indicator of how much prices have dropped to way before the boom started, to times when were were at the boring old 5% average appreciation: prices have dropped to a point where it would behoove savvy buyers and investors to look seriously at making some purchases.
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 | Phoenix Real Estate Market Trends Overview | Housing Market |
| Current and Historic graphs of the real estate market in Greater Phoenix |
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