Some areas are hitting their record lows for supply right now.
For example, in Scottsdale there are only 317 single-family detached homes available for sale without an existing contract in place. This can be compared with a long term average of 2,156 and a maximum of 4,362. It even looks small compared with this time last year when we had 533.
Paradise Valley is also experiencing an extreme shortage. There are just 85 single-family detached homes for sale without a contract, while the long term average is 307 and the maximum is 579
The upscale areas of the valley are experiencing the worst of the supply shortage at the moment. The most affordable areas are comfortably above the extreme lows we saw last year, but are still far below normal.
It is hard to imagine how prices can do anything but rise with supply at such a low level.
___________________
One of the phrases that I find myself repeating is 'money is moving to the Valley'. The evidence for that is looking at the year-over-year change in sales units and volume in the luxury sector. This can be proven below by simply running FlexMLS Buyer Statistical CMA's for 2020 versus 2021 at $1M plus:
2020 Sales over $1M:
Summary results: Above we see a 40% increase in $1M plus sales year-over-year. Note also that the Sale/List Price ratio moves from .96 to .98 (sellers coming down from list price at time of sale by only 2% on average and often bid up significantly. Also note how the Days on Market is almost cut in half to just over a 2 month supply!
$2M plus? It's even more robust when comparing year-over-year in the $2M plus market, where sales volume / units have nearly doubled!
Translation: "Money is moving to the Valley!" And we might add "RLSIR 'owns' the luxury space!"
No comments:
Post a Comment