The Cromford Report has published their June 2017 analysis and have some great information for Buyers and Sellers this May.
What you Buyers need to know:
More buyers have turned to new homes so far this year. Overall year-to-date new home sales are up 26% compared to last year as builders continue to add much needed supply to the marketplace. All price ranges over $225K have seen large increases in year-to-date sales, with builders focusing heavily on adding inventory between $275K and $500K. While the median price for new homes is significantly higher than MLS resales ($311K vs. $242K), by the square foot they’re actually quite competitive when compared by price range across a broad territory. Example, for new single family homes sold in Maricopa County between $225K and $250K, the annual average sales price per square foot* is $122, compare that to $132 for MLS resales and $133 for renovated homes sold by flip investors. This pattern repeats itself the higher you go in price. It does not ring true for buyers looking to live in a specific area however, when compared by zip code new homes typically are more expensive than their neighbors.
What your Sellers need to know:
The continued lack of supply in the market means that existing homeowners are seeing increased solicitations to sell their home outside of the local MLS. Normal, non-distressed sales that were sold non-MLS (often called “For Sale By Owner” or “FSBOs”) have risen nearly 13% year-to-date compared to last year. However, based on the annual average sales price per square foot, these non-MLS sales have sold for nearly 15% less than their MLS competitors. Anyone looking to sell their house without an agent should definitely keep these numbers in mind. It pays to use a Realtor. While the gap may vary, this trend holds true across all price points and cities with MLS competition.