Inventory Control in Greater Phoenix: What Price Range of Homes Are Selling?
November 10, 2008
Lower priced homes in the Phoenix valley, are approaching a balanced market shile luxury homes, especially over $1,000,000 are rarely selling.
The convention is that a 6 month supply of homes is a balanced market and that's probably for a median home price in a given city. In Greater Phoenix it's around $200,000 so we're not quite balanced but were close: still even if we did have a 6 month supply much of that is REO or lender owned which continues to have a very large impact on pricing.
None the less homes in the range of under $100,000 to $200,000 are selling rather well. Take a look at a report I did for homes under $100,000 in Greater Phoenix. You'll be surprised.
Price range and months of supply for single family homes.
>$100,000 | 6.6 | $400 - $500,000 | 12.4 |
$100-$125,000 | 5.6 | $500 - $600,000 | 20.5 |
$125 -$150,000 | 7.3 | $600 - $800,000 | 23.7 |
$150 - $175,000 | 7.1 | $800 - $1,000,000 | 42.2 |
$175 - $200,000 | 8.5 | $1 - $1.5 million | 44.1 |
$200 - $225,000 | 7.9 | $1.5 - $2 million | 51.6 |
$225 - $250,000 | 8.3 | $2 - $3 million | 82.1 |
$250 - $300,000 | 7.6 | $3 + million | 146.3 |
$300 - $350,000 | 9.2 | ||
$350 - $400,000 | 9.9 |
(ARMLS Data Crunched by The Cromford Report | Artur Ciesielski, CCIM)
The higher you go in price range the lower the sales, the lower the buyer pool and the higher the supply of homes. For anything over $400,000 the supply increase a lot. There is just less financing available in this price range.
Once you get past $800,000 the supply is dramatic with the supply of 40+ months. That is some fierce competition, but it does not mean a home can't sell, it just means it will have to be well priced and in good condition or otherwise a good deal.
Look at the range of $2 million plus then the range of $3 million plus. Homes over $2 million have close to a 7 year supply while homes over $3 million have a supply of over 12 years and that is if not other homes hit the market.
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