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Market Update
July 2018

FROM MICHAEL ORR AT THE CROMFORD REPORT
THE PHOENIX AREA LEADING EXPERT ON REAL ESTATE ANALYSIS.


Cost of Waiting to Buy Means Less Closet Space or Higher Payment

More New Homes Sell in Low $200's This Year

For Buyers:

Hearing cries for more affordable housing supply, developers have sold more new homes in the low $200s this year; selling 35% more than they did last year within the same time frame. However, the under $200,000 market remains neglected for additional supply. As of May 2018, only 6% of new homes sold were under $200,000, 37% were between $200,000 and $300,000 and 41% were between $300,000 and $500,000. This means that properties under $200,000 will continue to appreciate faster than any other price point and homes sold in this price range are only getting smaller. The annual average home size sold between $100K -$200K, new and resale combined, is currently 1,390sf compared to 1,454sf last year. That's a loss of 64sf and roughly the size of a couple of closets. Since 2014, the annual average home size sold has consistently hovered around 1,975sf. Those buyers who didn't want to sacrifice living space paid an average of $22,000 more for a 1,975sf home in the past year.

For Sellers: