AZ Home Market is Getting Interesting

The market is getting more interesting. We have trends in both directions in both supply and demand, depending on which segment we are looking at. One of the most useful ways of measuring demand is looking at annual sales rates. Using annual sales rates removes the distortions caused by seasonal effects that we see when we look at monthly or quarterly sales rates. In a healthy market we expect to see gradually increasing annual sales rates. However in some parts of the market a lack of supply is crimping sales, while other segments are increasing or decreasing for reasons which are not obvious.

Annual sales rates are currently declining in the following:

• Avondale

• Chandler

• Gilbert

• Goodyear

• Laveen

• Sun Lakes

Annual sales rates are currently increasing in the following:

• Arizona City

• Cave Creek

• Glendale

• Gold Canyon

• Mesa

• Paradise Valley

• Peoria

• Queen Creek

• Scottsdale

• Sun City

• Sun City West

• Surprise

• Tempe

Sun City is seeing the fastest rise in annual sales rates, up from 1,215 this time last year to 1,378 now.

Inexpensive to mid-price homes targeted for the over 55 age group are definitely a hot item at the moment.