Friday, February 5, 2010

A 10-year look at the 2009 Phoenix Real Estate market

Housing Tracker Phoenix

I usually break down the Phoenix housing market on a micro level. But, and as Monty Python used to say, "and now for something entirely different," here's a look at the larger macro picture.

I was interested to see just how far prices have dropped since the boom years. So I logged into the multiple listing service, came up with a few criteria, pushed a few buttons, and here you go: a 10-year look at the average price and price per square foot in the Phoenix housing market. This is my disclaimer: this information came directly from the Arizona Regional MLS. Any realtor and can get the same information. I'm not responsible for any errors in the data. OK, now that that's over with, let's get back to this post.

Read that chart in this manner: in 2009 there were 92,146 residential sales in the Phoenix area. That total sales volume equaled $15,668,606,573, or an average price of $170,045. Since the average sold home was 1,930 square feet, the average price per square foot in the Phoenix housing market for 2009 was $88.00

chart depicting phoenix housing market

Housing Tracker

Phoenix residents and those in the know realize the rest of the chart isn't really any ground breaking news because this information was available on an intuitive basis. In other words, we all knew that house values started an amazing increase in 2004 - 2005 and that many people bathed in the "afterglow" during 2006. But seeing these numbers all in one place -- and in black and white -- is a littleshock to the system. However, then the foreclosure crisis set in and home values decreased to their current state.

You can see a $94.00 drop in the price per square foot from 2006 to 2009. Obviously, that is due to the fact that approximately 55% of all homes sold in 2008 - 2009 were foreclosure-type properties. I'm talking about bank owned homes and short sales. That quantity of foreclosure sales is enough to suck the life out of values in any housing market (and we won't name other housing markets in this post -- you know which ones I'm talking about ).

When people ask me "is this the time to buy real estate" I can now honestly say prices are lower than they have been in the last 10 years.

Phoenix real estate

Housing Tracker Phoenix

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