Things have been changing in ZIP codes 85044, 85045 and 85048. We’ve gone from a Seller’s Market trending to a Buyer’s Market and now stabilizing into a more “normal” market. The number of property sales for the last two months have been consistent. Sales price per square foot remained stable for four months, dipping slightly in October. I emphasize “slightly” as you will see from the numbers.
October property sales totaled 118, a small increase of 1.7 percent from last month and down 9.2 percent over October of 2012. As we compare the October sales to 2011 and 2012, this year’s number was at the lowest level. Yet, the year-to-date (YTD) sales for these ZIP codes were still 6.5 percent ahead of last year’s YTD sales.
The median sales price in October was $285,000, up 21.3 percent over the prior year. Currently, the medium list price is $312,450, which is down 5 percent over last month and up 16 percent over prior year same month (PYM). October 2013’s average sales price was $305,066, up 10 percent over last month and up 21 percent over PYM. October’s YTD sales of 1,433 are running 6.5 percent ahead of last year’s year-to-date of 1,345 sales.
Inventory continues to climb slightly for the sixth months in a row to 410 listings. Market time (DOM) shows how many days the average property is on the market before it sells. The DOM for October was 42, slightly less than last month and down from 55 days in October of 2012. For October, we have an increase in listing inventory and a decrease in DOM.
The sales price per square foot is a good indicator for the direction of property values. The October 2013 selling price per square foot was down 3.4 percent to $140 from $144 last month, and up from $131 in October of last year.
The last indicator of the market is inventory, which includes existing listings and new listings. Currently, the Multiple Listing Service shows 175 new listings for the second month in a row. It was up 6.1 percent, from October of last year.
Inventory continues to grow slowly. Sellers whose homes are priced well are selling in a reasonable amount of time. Additionally, interest rates continue to hover between 4.25 percent and 4.50 percent. These trends continue to be positive and indicate a healthy market for both buyers and sellers in the Ahwatukee and Foothills areas.
• Linda Berg is branch manager and designated real estate agent for the Ahwatukee/Tempe office of Coldwell Banker Residential Brokerage. She has been a Realtor since 1978 and past-president of the Southeast Valley Association of Realtors. Reach her at (480) 753-3122 or www.azmoves.com/Linda.Berg.