Fortunately this week, things have really leveled off for us here in Phoenix. Active listings have started to stabilize after a significant increase in March. The main problem is still that demand for housing has dropped significantly from about a month ago. But this is to be expected, since most people aren’t leaving their house. Home values are holding, and we won’t start to see a drop in prices until our supply of housing rises significantly. There is no indication of this happening, as new listings are coming onto the market at a much slower pace than usual.
There is a chance that you could start to see the average price per square foot decrease, but this does not mean that home values are actually going down. Right now, the luxury market, which are homes priced over a million dollars, is very quiet. Many homes in this price range were pulled off of the market, and the ones still on the market are not selling as quickly as they were. These luxury home prices bring our price per square foot up significantly. When you remove these properties, it looks as if there is a significant drop in the price of homes. Don’t let this fool you. If you do like to look at the price per square foot to value your home, make sure and stay in the approximate price range your home is in. This will get you a much more accurate number.
After a crazy month, things are starting to slow down as far as news and changes to the housing market. We’ll continue to update you, but we’re going to go back to our monthly housing update. We think this will bring more value to our clients. We’ll see you in May!
Aurelia Realty Group – Jennie Gwinn and Tracy Mask, your real estate agents in Surprise, AZ