Phoenix Metro Market Update

 For the greater Phoenix area, the average sales price per square foot as of August 26, 2014 was $126.00, this is down from April's average square foot price of $131.00. Most home prices are no longer rising and some are slightly falling.

The Phoenix area market indicators are showing signs of weakness, mortgage applications are at the lowest level since December of 2000. The market indicator are all down from the normal = 100. The Supply Index is showing 85.5 and is showing signs of staying weak through the end of 2014. The Demand Index is at 81.0 and this index does not look like it will change much through the end of the year. The third index is the Market Index which is showing the Arizona market is a balance market. Although as an average we show we are in a balance market there are areas that are a Buyers market such as Maricopa, Laveen, Buckeye, Casa Grande and Gilbert.

Home demand by Buyers is weak but rental demand is strong, rent is up 7% this year and rent may continue to rise through 2015 due to a rental property shortage. As of August 26, 2014 there were 3048 single family residental rental listings on ARMLS and in January there were 4345, this is only a 36 day supply and those homes still on the market has an average rental rate of $1760.00 per month. The average rental rate was $1449.00 per month in January.

Looking ahead, we are seeing the second quarter of 2015 showing improvement in the Phoenix Metro real estate market, with past foreclosed home owners wanting to be home owners again and with the pressure from the increase of rental rates. The only index of concern will be the Supply Index, this may lag the Demand Index causing home prices to rise.

For additional information about buying or selling a home contact:

Lee Ehrke - The Ehrke Team
Keller Williams Realty East Valley
2077 E Warner Rd #110
Tempe, AZ 85284
lehrkenj@gmail.com
Phone: 480-526-0306


All data provided by the Cromford Report