Well folks, it`s started. The annual price decline during the third quarter is underway as usual. Taking a look at the daily chart for the monthly average price per sq. ft., we currently see the lowest reading in the last 2 months. This chart is an important early indicator of a change in market direction.
This does not mean that prices are really on a downward trend. It is a phenomenon caused by the significant fall-off in luxury home activity during the summer months. Since the regular market maintains more of its momentum, the average price and average $/SF both take a temporary hit until luxury home buyers return in greater volume in October. You can see this happen every year but some years the effect is drastic and in others it is a little muted. It always shows up in some form however.
A broad-brush observation, while listings are down favoring sellers, it’s matched by sales being down favoring buyers (month-over-month). In short, it’s a wash in terms of supply and demand, and of course, seasonal, evidenced by very similar number last year and even two years ago. Proving it’s a ‘normal’ and relatively stable market here in The Valley.
Contact Fitzgerald Luxury Group for a consultation on your property and to discuss how this information may impact you. 480.560.7000