In July’s Cromford Report, HERSH24k presented continued good news for buyers as there is still good supply for the lower end of the luxury market. However, sellers could expect the typical seasonal summer slowdown consistent for the Greater Phoenix area in July. So, what has changed in August? Not much. Let’s take a closer look.
This month’s Cromford Report focused mainly on the $200k to $400k range, which is below or just touching the bottom of the luxury market. The Cromford Report states:
“56% of year-to-date sales in Greater Phoenix have been between $200K-$400K so this increase in supply should come as a little bit of relief for most buyers.”
All-in-all, the Cromford Report has consistently pointed to a buyer’s market after the typical real estate peak in April.
For sellers, the Cromford Report states:
“Buyer activity is expected to slow seasonally from the peak in April through the end of the year, however, open contracts have dropped 26% since the 2018 April peak compared to a lower 20% drop in 2017 over the same time frame; all while corresponding supply has been rising. Sellers haven’t seemed to notice this sharper decline as their average asking price per square foot has soared from just 3% higher than last year in March to as high as 7% higher in July. The average sales price per square foot was up 5.9% in July, compared to 4.6% in June. However, price is a lagging responder to shifts in supply and demand. We will have to wait and see if buyers accommodate sellers’ price expectations given that they have more to choose from in the marketplace right now.”
For more comprehensive insights on the Phoenix Metro residential real estate market, take a look at The Cromford Report infographic for August.
Image Credit: Cromford Associates LLC and Tamber Consulting LLC
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