The Cromford Daily Observation report shows the monthly average sales price per sq. ft. for homes across the Greater Phoenix area under $200,000 has increased about 7.5% or rather about $7.00.
The monthly average sales price per sq. home priced between $200,000 and $500,000 increased by about $5.00 or just under 4%.
The monthly average sales price per sq. ft. for homes priced between $500,000 and $1 million increased about $1.00 or less than 1%.
The monthly average sales price per sq. ft. for homes priced over $1 million has fallen by 14% or $52.00.
Obviously, prices are going up faster with lower priced homes, less quickly in the mid-range, and declining with the high-end priced homes.
These trends will likely become stronger due to demand from millennials likely to grow over the next decade with demand from baby boomers declining. The Cromford Daily Observation points out demand at the low end will continue to outstrip supply, while supply remains relatively good at the high end in all but the most popular areas. The report says whether the high end recovers from its current lull will probably have a lot to do with the global economy and the fortunes of the stock market.
An article in Bloomberg says buying a home should be getting easier for millennials but instead, increased demand and not enough supply of starter homes is pushing prices too high for this age group.
The Bloomberg article says the gap in the growth rate between the cheapest and most expensive homes is now the widest since 1983.
Even worse, the starter-home supply crunch is worsening, adding to the pressure on prices according to the article. zillow.com says the starter-home supply crunch is worsening, adding to the pressure on prices. The bottom third of the market accounted for 24.4% of listings in August, down from 25.6% a year earlier.