Tuesday, October 23, 2007

Desert Ridge Market Overview-Single Family Homes

It's been a few weeks since we've taken a look at the Desert Ridge market. I'd like to take a few minutes to provide you with an overview of the current market in the Desert Ridge area. I'm going to separate the market into two segments…Single Family Detached & Condo/Townhouse. First we'll take a look at the Single Family Detached market. I'll publish a second post pertaining to the Condo/Townhouse market later this week.

As of about 9:00 am Monday 10/22/07, there are 154 active listings. They have an average list price of $689,516, an average square footage of 2,957, which would make the average list price per square foot $233.18. The average Days on Market for these listings is 113 days. In the past week 7 new listings were placed into the MLS at an average list price of $820,214, an average square footage of 3,320, making the average list price per square foot of these new listings $247.05.

Currently there are 8 listing in "Pending" status, meaning that they've received a contract, negotiated the terms and conditions and have agreed to those terms, placing the home into escrow due to close at a later date. The average list price of these listings is $688,425, with an average square footage of 3,192, making the average list price per square foot $215.67. The number of listings in "Pending" status, a.k.a. in escrow, has decreased over the last several weeks. A little over a month ago this number was at 11. This number is a good indicator of what the sales numbers will be in the next 30-60 days.

As part of my weekly analysis of the Desert Ridge market I pull a 1-month rolling sold number. On Monday when I pulled the numbers, we had 9 listings close between 9/21/07 – 10/21/07. This is the lowest number of closed listings in my 1-month rolling sold numbers this year. We started the year out at 15, and have been as high as 32 from 6/8/07 – 7/8/07. I would suspect that the numbers for the remainder of the year will be on the lower end of the range as the holiday season typically puts a damper on sales activity. The average list price of these listings was $610,877, the average sales price was $589,655, a 96.53% list price to sales price ratio. The average square footage of these closed listings was 2,537, making the average sales price per square footage $232.42. We've seen a slight increase in this number throughout the year. We started out at $226.68, with a low of $215.53 and a high of $234.93. As you can see this number has held pretty steady throughout the year. In looking at the "Pending" listings I would suspect that this number will also be on the lower side of the range for the remainder of the year.

I hope this analysis gives you a better picture of how the Desert Ridge real estate market is currently doing. Compared to the rest of the Phoenix market in general, Desert Ridge is doing very well. If you are currently looking to buy a home in the Desert Ridge area, know that if bought at a fair price, you will most likely be making a very prudent investment. Not to mention, Desert Ridge is just a great area to live.

-Steve Nicks

[tags] Desert Ridge, Market Analysis, Days on Market [/tags]