More good news for home sellers – buyers, not so much The Mesa Tribune | The Hometown Newspaper for the city of Mesa, AZ

More good news for home sellers – buyers, not so much

More good news for home sellers – buyers, not so much
City News
0

TRIBUNE NEWS STAFF

Sellers have no reason to be jittery about the Valley’s housing market – and especially the East Valley – judging by the Cromford Report’s latest look at last month’s home sale data for the region.

In fact, in an index developed by Cromford Report – the leading analysis of the Phoenix Metro housing market – Mesa has the fifth hottest market among 17 Valley cities it monitors on a daily basis.

Cromford uses a variety of data for an index that shows how favorable the market is toward buyers or sellers in 17 Valley municipalities.

With 100 on the index representing a balanced market, the higher above 100 for any city, the more tilted the market is toward sellers.

On that score, Mesa has a 402.7 index reading – behind first-place Avondale (an unprecedented 717), Glendale (530.2), Gilbert (417.9) and Chandler (410.9).

Phoenix ranks seventh with 387.4, Queen Creek is in 10th place with a 353 score, Scottsdale is 14th with a 274.8 and Tempe is second-last with 238.2.

All that spells bad news for people looking to buy a home.

Cromford said that while the Valley’s nearly unprecedented low inventory of homes for sale is loosening a tad, prices are rising at an even quicker pace than they had in the first half of 2020.

“The housing market is extremely strong and has been hitting a number of new records in the last few days,” Cromford said, adding that inventory declined by only 3.5 percent – far weaker than in June.

“This is because we are seeing far more new listings than we got during the first half of the year,” Cromford said, adding the increase “appears to be setting in for the long run.”

Noting that closings were up 13 percent over July 2019, Cromford said demand – far from being curbed by the pandemic “has reached heights that make it very strong by any historical standard.”

And that means buyers can expect prices to rise faster – and homeowners can expect to see their houses appreciate at an even higher rate.

The average price per square foot rose 4.5 percent in July – which Cromford said would be normal year-over-year but not from one month to the next.

“This happened during a summer month, making it even more remarkable, because summer months are usually rather weak for pricing, even in strong markets,” it said.

Median sale price has risen 12.5 percent between July 2019 and last month and the double-digit increase in appreciation is “something which we have not seen for six years,” Cromford said.

Cromford said all this adds up to a market that is “extremely unfavorable for buyers” just about anywhere in the Valley – and especially in the East Valley, where Chandler and Mesa rank fourth and fifth, respectively, on its index.

“Not only do they have to contend with prices rising at an unusually high rate, when they do find a house on which they would like to make an offer, they will probably find dozens of other buyers with exactly the same idea in mind,” Cromford said, adding this somber note for those looking to buy:

“We do not see things improving for buyers during August and most sellers can get away with being pretty much as unreasonable as they wish to be. Frustration, tension and stress are the order of the day.” ′

Comments are closed.