Wednesday, October 24, 2007

Desert Ridge Market Overview-Condos/Townhouses

Earlier in the week I published a post detailing the real estate market in the Desert Ridge are for Single Family Detached homes. I also wanted to provide you with a quick overview of the Condo/Townhouse market in the Desert Ridge area as well. So here you go….

As of about 9:00 am Monday 10/22/07, there were 46 active listings. They have an average list price of $377,446, an average square footage of 1,526, which would make the average list price per square foot $247.34. The average Days on Market for these listings is 123 days. In the past week 4 new listings were placed into the MLS at an average list price of $374,196, an average square footage of 1,475, making the average list price per square foot of these new listings $253.69.

Currently there are 6 listing in "Pending" status. The average list price of these listings is $388,130, with an average square footage of 1,594, making the average list price per square foot $243.49. The number of listings in "Pending" status has increased by a couple over the last several weeks. A little over a month ago this number was at 4. This number is a good indicator of what the sales numbers will be in the next 30-60 days.

On Monday when I pulled the numbers for the 1-month rolling solds, we had 5 listings close between 9/21/07 – 10/21/07. This number has held fairly steady throughout the year. It's been as high as 9 during the time period between 4/6/07 – 5/6/07, and for the first three weeks of the year was 0. The average list price of these listings was $324,550, and the average sales price was $288,795, a 88.98% list price to sales price ratio. The average square footage of these closed listings was 1,392, making the average sales price per square footage $207.47. The price per square foot on the in the Desert Ridge condo market has seen a slight decrease throughout the year. The main reason for this, as I see it, is that over 30% of the available inventory is builder spec units that they are quite motivated to sell. Typically the builder is going to have much more negotiating room when attempting to sell their inventory. Is this good for current owners who are attempting to sell? Nope! But until the builders sell all of their inventory, property owners are going to have to make decision based on this information.

I hope this analysis gives you a better picture of how the Desert Ridge area Condo/Townhouse real estate market is currently doing. The Condo/Townhouse market, for the most part, is controlled by the builders at this point. Until they are out of inventory, property owners who are attempting to sell will be at the mercy of what the builders decide to do with prices. Unfortunately, the bad news is that there are many more new Condo/Townhouse developments on the horizon.

-Steve Nicks

[tags] Desert Ridge, Market Analysis, Condos, Townhouses, Days On Market [/tags]