The Cromford Daily Observation report is out comparing the first half of 2015 to the first 6 months of this year. The trends are based on all recorded deeds in Maricopa and Pinal counties for single family and condo/townhomes.
The Cromford Daily Observation finds sales are down 5.9 percent on homes priced under $200,000. However, the average price per SqFt is up 8.4 percent to just over $100. The report shows there’s not enough supply in this price range.
Homes that are a little more expensive, in the price range of $200,000-$500,000, The Cromford Daily Observation shows sales are up 18.2 percent. The price per SqFt is up, as well, at 2.5 percent at almost $137. Demand and supply are both booming in this price range.
Homes in the price range of $500,000-$1 million, sales are also up 18.2 percent but the average price per SqFt is down 0.3 percent to almost $200, according to The Cromford Daily Observation. Demand is up but there’s an abundance of supply.
In the price range between $1 million-$2 million, sales are flat. The average price per SqFt is also flat at just over $298. No surprise, demand, and supply are both flat with excessive supply.
The Cromford Daily Observation also finds with homes over $2 million, sales are down 8.1 percent but the average price per SqFt is up 3.1 percent to over $460. In this price range, there’s a huge supply but weaker demand.
Homes over $3 million are holding their own with a price increase 0.6%. Sales, though, are down over 12%. The price trends in the new home sector look better in all price ranges except for home prices under $200,000.
The Cromford Daily Observation also notices that people assume new homes are more expensive than re-sales. This may be true for homes under $200,000 and over $1 million. But for homes between $200,000 and $1 million, the average price per SqFt for new homes was lower for the first half of 2016 than the average price for re-sales. Why? Speculation is that new homes in these price ranges are located in areas with more affordable land such as in Mesa, Gilbert, and Peoria. It’s a difference story where land is more expensive such as Scottsdale, Phoenix, and Tempe.