Valley home prices back to 2008 levels
In 2007, the Valley’s housing market began a long spiral collapse, followed by years of high supply and low demand, leading to a multi-year, very slow, very steady period of recovery.
About 19 months ago, people realized that the Phoenix real estate inventory, once as high as 60,000 available properties, had dwindled to well below 10,000 units. Indeed, we had shifted from a strong buyer’s market, to a rabid seller’s market, which is where we remain today.
One of the easiest statistics for people to relate to is price. Both “Average Sale Price” and “Median Sale Price” are helpful measures of a market’s affordability. When tracked over time, they can also show the relationship trend between supply and demand.
With increasing demand and historically low supply, the Greater Phoenix housing market has about recovered to where it was in June 2008, when the median price of all single family homes was $195,000. As of June 2013, the median sales price is $192,000, up from $185,000 the month prior.
Here’s a chart that illustrates Median home values from mid-2008 to mid-2013:
Not surprising, the Average Sale Price of a single family home has mirrored the graph above:
In July 2008, the Average Sale Price was $254,863. In June 2013, it was $250,965.
Though we experienced a small $2000 dip in the average sales price between May 2013 and June 2013, I expect appreciation to continue for as long as the inventory supply remains tight. Investment opportunities are still out there!