This is not just another article about the improving real estate market. We’re here to tell you about what has actually happened in 2012 and tell you what to expect over the next 12 months so you can prepare your next move strategically.
First let’s talk about supply. In the real estate circles of the world, supply refers to the inventory of homes available for sale. A year ago this time, Grayhawk had 27 homes for sale (single family and patio homes). Grayhawk had over 50 homes for sale more than 2 years ago. Currently there are 21 listings. To sum it up, supply is low and down from this time last year.
Next, demand. Demand is the amount of homes sold and amount of buyers that will buy in the near future. In 2011, Grayhawk had 145 homes sold for the entire year. Last year, Grayhawk had 137 sales. At first glance, it would appear to be that demand is off but what is actually happening is there isn’t enough inventory to meet the demand.
Lastly, prices. What the last 10 years of tracking price tracking in Grayhawk has taught us is: follow supply and demand and you will know where prices are headed, NOTHING ELSE MATTERS. Last year, we had 2 month’s supply of homes on the market. Grayhawk saw prices rise about 12% on average! Currently, we have 1.6 months of inventory of homes for sale on the market in Grayhawk (Note: more inventory of homes available on the higher end than the lower end). This is why we will see prices continue to rise until this changes. One caveat, homes over 1 million are not rising as fast as the rest of the market due to the lack of lending for jumbo loans. The key is understanding the market and how these averages apply to you.
To find out the value of your house, visit our North Scottsdale House Values page. Or if you’d just like to see how much homes are selling for in your neighborhood, you might like the Grayhawk home sales page better.