Home prices seem to be stabilizing

After several years of home prices dropping, the stats are starting to look encouraging.  As you can see from the 2009 Average Sales Price per Square Foot on a monthly average and the start of 2010’s numbers.  Home sales prices are showing signs of stabilizing.  This chart takes into the average, single family homes, condos, manufactured homes, and all areas of the Valley.  This average price per square foot is not reflective of each individual neighborhood.

avg-sales-price-per-sqft

Taking a broader look at a bit more data …

The Arizona Regional Multiple Listing Service Home Sales Report for the county for the month of April (the most current data available as of today);

The data for single family home sales shows us that the largest number of home sales was in the 100,000 to 160,000 price range with 2,111 sales.  (total sales for single family homes in the month of April was 6,718)

There are strong sales numbers up to 400,000 with a jump in buyers at the 200-250,000 price as well.

financing-type1

Looking at the same data at the bottom of the page check out the  financing type.   Most buyers are either using FHA loan or cash to purchase.

Taking this into consideration, and what I  have been hearing from others in the filed.  We still have lots of investors buying up the inventory. We also have lots of primary home buyers as well.

The investors were expected to be the first to jump into the market.  They have been buying up inventory for quite a while now.   It is I believe the primary home buyers purchasing that is stabilizing our prices.

Comments

  1. I completely agree with you Irene. Home prices in the Nashville market also seem to be stabilizing which is giving me hope for the return of normal real estate market forces soon.

    I am sure that Scottsdale will come back a lot faster than other suburban areas of Phoenix.