Tempe, Arizona’s real estate market continued to see a dramatic decline in average selling prices when compared to last year at this time. Inventory in Tempe increased slightly in the single-family home market from July 2008 to August 2008. Here are the two-year pricing trends for single-family real estate in Tempe, Arizona:
Average real estate prices in Tempe, Arizona's single-family market. Raw data can be found here. Click to enlarge.
In the graph above:
- the blue line indicates the average price of single-family homes currently listed in Tempe.
- the green line indicates the list price for single-family homes before being sold. In other words, this is the average price for all listings that went under contract before the final sales price was agreed upon by the buyer and seller through contract negotiations.
- the yellow line indicates what the average sales price was for single-family homes in Tempe.
Year-Over-Year Selling Price Changes in Tempe, Arizona Single-Family Real Estate Market. Click to enlarge.
The average number of days it takes to sell a single-family home in Tempe, Arizona. Click to enlarge.
Single-family inventory levels in Tempe, Arizona. Click to enlarge.
As a reminder:
- Less than six months of inventory indicates a “seller’s market.” In a seller’s market there are more buyers than there are homes to purchase. As a result, real estate prices may increase during a seller’s market because there is less inventory than there are buyers. This is what happened during the 2004 - 2006 real estate boom in Phoenix.
- More than six months of inventory indicates a “buyer’s market.”In a buyer’s market, real estate will often sell below the listing price because there are more buyers than inventory. Much of the country has experienced an extreme buyer’s market over the past year or two.
- Six months of inventory indicates a “balanced market.” This is the most desirable market for buyers and sellers alike. Homes will typically sell near listing price because there is a balanced amount of inventory when compared to buyers. Sellers who market their property correctly and at the current market price will often receive an offer near that list price. Buyers are more confident in purchasing because prices are stable or appreciating.
The increase in inventory levels may be a pattern over the last quarter of this year. Historically, the last quarter to third of the year (September - December) is a slower selling time for real estate. The public’s attention is tuned to the new school year and then the holidays - a time when few people have the time or want to take the time to move or relocate … if they have a choice.
This year we’ll most likely continue to see that trend. Not only is there a traditional real estate market slowdown this time of year - but this year the economy and public are trying to grasp with the financial crisis, how it will be resolved and what the final resolution will mean for home prices. Regardless of the time of year, this event alone is keeping many traditional real estate buyers out of the market.
Those who are ready-and-able to purchase real estate, however, are greeted with a plethora of inventory across the Phoenix Valley. Not only that, they will continue to have incredible negotiating power - if not more in the last quarter of 2008 - as a result of fewer buyers.
Are you ready to purchase real estate in the Phoenix Valley? Relocating and need to buy now? You can search our site casually or set up a fusionpower search - giving you a powerful personal and secure webpage with homes that meet your search criteria!
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