06/02/2015
Hello Everyone, I wantd to provide a market update via the Cromford Report. Hope you find this information useful.
Supply is so low in ceratin low-cost areas that pricing is moving up much faster in these spots than for the market as a whole. Supply gets much stronger as we move up-market, but the overall number of days of inventory is down to 114, the lowest number since January 9. 2014.
There are no signs of the seller's advantage weakening for the bulk of the market. Certain luxury markets, particularly Arcadia, Biltmore and Central Scottsdale are also starved of supply, but many areas that are expensive and further from the airport still have plentiful supply, so upward pricing pressure in these more distant places is far lower.
The new home developers are responding to the overall housing shortage. The Census Bureau reports 1,642 single-family permits in Maricopa & Pinal Counties for April, by far the highest monthly total since August 2007.
The City of Phoenix is doing well thanks mainly to very strong markets in the west and south of the city where supply is extremely low.
Other than Tempe, the Southeast Valley has lost much of its former momentum and although in much better shape than in January, is making little further progress. Supply in Gilbert is up more than 6% over the last month. Generally the areas closest to Tempe are doing the best for sellers, such as West Mesa and North Chandler.
In Scottsdale demand remains slightly below normal while supply is slightly above normal and much stronger than in any of the other cities. Buyers have a very slight edge in Scottsdale, more so in the far north, much less so in the south where conditions favor sellers.
