There's good news for the Ahwatukee marketplace! It's all about "supply and demand."
The supply of homes has been steadily declining since October 2010 and the demand for housing has been steadily increasing during the same time frame. According to Mike Orr of the Cromford Report, unless something changes significantly, we probably reached the bottom of the market in January 2011.
The amount of new listings that are coming on the market in Multiple Listing Service (MLS) has also declined. In October of 2010, 220 new listings were placed on the MLS in ZIP codes 85044, 85045 and 85048. In April of 2011, only 189 new listings entered the market.
The average time on the market is also declining. In October of 2010, the average time for a home to be on the market was 94 days. Last month, it was down to 73 days. The average sales price per square foot has for listings hovers around $105 and the average sales price per square foot was $103 for April, 2011.
During the most difficult times to sell a home and get a fair market value was when supply was at its peak. Our marketplace seemed to peak in December 2010, when we experienced a high of 10 months supply of listing inventory. Today, we are at less than four months supply of inventory. The average sales price per square foot has climbed for the past two months to $103 from a low of $99. Some of this increase is being fueled by multiple offers on properties.
All these trends indicate a much healthier market for sellers in the Ahwatukee and Foothills areas.
• Linda Berg is branch manager and designated real estate agent for the Ahwatukee/Tempe office of Coldwell Banker Residential Brokerage. She has been a Realtor since 1978 and past-president of the Southeast Valley Association of Realtors. Reach her at (480) 753-3122 or www.azmoves.com/Linda.Berg.