October Arcadia and Paradise Valley Sales Stats
Greater Arcadia experienced an uptick in sales volume over last month. This is typical with the seasonality of our market. When the homes that closed in October went under contract, summer was winding down. People were back from vacation and ready to take looking for a home seriously. The sold prices were down from last year, but so was the size of the home sold. If you look at price per square foot, the prices were still down from last year, $297 per foot this October compared to $301 in October in 2016. Could this be an indicator of a softening market?
The chart above only includes single-family homes, but it is interesting to note that condos in the area made of 30% of the total sales, up from 24% a year ago. Condos continue to be a more affordable option in the Arcadia area.
If we look specifically at Arcadia Proper, we are ahead year over year with most activity occurring at the lower end of the price range. With prices still on the rise, most speculative builders are starting to feel a bit priced out of the market. As it has been for the last year or so the best opportunity is for the home buyer who is willing to take on a remodel, the buyer can tailor the home to their needs and spread the potential gains over a number of years.
It is a seller's market for the people trying to sell homes under $1.5 million, but your price has to be spot on. Buyers are not willing to pay top dollar for an older remodel. Sellers need to be realistic about their homes value.
Paradise Valley is continuing its hot streak! Six months inventory of homes is considered a balanced market, favoring neither buyers nor sellers. In the luxury market, the months inventory figure is often higher given the smaller pool of available buyers. But, PV is bucking the trend. Under $1.5M in PV, there is only a 4.6 month supply of homes. This means if no new homes were to come to the market, in a short 4 and half months, there would be no homes under $1.5 million in PV! Also notable are the 8.4 months supply of homes priced between $1.5M and $2M and 14 months supply of homes between $2M and $3M. Sales of homes between $2M and $3M are up 39% year over year. The softest part of the PV market is the ultra high-end with 27 homes priced over $6M, only two have sold in 2017.