Goodyear Median surges past $300,000

The Median Sales Price in Goodyear was $303,000 in January, the first month ever above $300,000 for the city. When you consider the upward trend over the last two years, and the fact that Dec-Jan is typically the low / slow time, we might see big things in Goodyear this year. (Too bad past performance doesn’t always forecast future results; we’ll have to wait to see what happens…)

-

- Chris Butterworth

-

Simple MLS Charts is supported by readers like you. If you find these charts useful, please consider becoming a patron with a small monthly pledge on Patreon.

* All chart data represents single-family detached homes only. Information is believed accurate but not guaranteed.

 

Maricopa County prices continue upward

The Median Sales Price in Maricopa County was $290,000 in January, up 6% YoY from last January’s median price of $273,900. That 6% growth for the year is actually on the low end of the 4-year trend, as prices have risen almost 33% since January 2015.

-

- Chris Butterworth

-

Simple MLS Charts is supported by readers like you. If you find these charts useful, please consider becoming a patron with a small monthly pledge on Patreon.

* All chart data represents single-family detached homes only. Information is believed accurate but not guaranteed.

 

Median Sales Price - the most important metric

I don’t have a chart for today; instead I wanted to talk about the types of charts I usually publish and the various metrics they measure. Long-time readers have seen lots of different measurements:

  • Highest priced homes

  • Lowest priced homes

  • Price per Square Foot

  • Number of Days on Market

  • Sales Volume (Number of Homes Sold)

  • Sales by Pricing Bands (ie: $100,000 - $200,000, etc.)

  • Sales (or Pricing) by Amenities (ie: homes with swimming pools, etc.)

Each of these measurements has a role in your toolbox of understanding the marketplace and comparing one area with another. But if I had to choose one metric as the most important, I wouldn’t hesitate:

Median Sales Price

Median Sales Price is the most accurate (fair, true, realistic) way to compare one area with another, or one area to itself over time. It doesn’t allow for a small percentage of the area to distort the overall number, the way Average does (also called Mean).

Median, by definition: Median is the middle number in a list of sequential numbers. As Median Sales Price, it is the price at which half of the homes are more expensive and half are less expensive.

If you think about it logically, the price you are willing (and able) to pay for a house shows exactly how desirable that house is when compared with all the other homes you have to choose from.

You might not be willing to pay $200,000 for a 2,000 square foot home in El Mirage; the home and/or area isn’t desirable enough for you to write that check.

Most of us would be willing, but not able, to pay $2,000,000 for a 2,000 square foot home on Camelback Mountain; the area is that much more desirable than most of the rest of the Valley. (And even though you might not be able to buy that house, someone else probably will..!)

When you take the end result of all these “willing and able” purchase decisions and line them up, the median sales price is a pretty good indication of the overall desirableness of the area, whether compared to another area or compared to itself over time.

The median sales price actually incorporates all the other metrics described above:

  • Larger homes usually cost more money which raises the median sales price.

  • Fewer days on the market means buyers are acting quickly to beat out other buyers, which means they’re getting fewer discounts (or even paying premium prices), which raises the median sales price.

  • Homes with swimming pools generally sell for more money, so more of these homes in an area probably means a higher median sales price.

What does this mean for Simple MLS Charts? 2 things, really.

1.) This is the reason why the majority of my charts compare median sales prices. But I’ll also look at other metrics throughout the course of the month, because as Realtors we do care about things like Days on Market and Price per Square Foot.

2.) I’d like to explore in more detail how these metrics are inter-related with each other, and how/why Median Sales Price encompasses them all. Look for a short article like this once in awhile over the coming months…

-

- Chris Butterworth

-

Simple MLS Charts is supported by readers like you. If you find these charts useful, please consider becoming a patron with a small monthly pledge on Patreon.

* All chart data represents single-family detached homes only. Information is believed accurate but not guaranteed.

 

Phoenix - Most Impactful Zip Codes

3 Charts today:

  • Chart 1 shows the zip codes which had the most sales in 2018.

  • Chart 2 shows the zip codes with the highest median sales price in 2018.

  • Chart 3 shows the zip codes with the lowest median sales price in 2018.

Chart 1: Number of Sales by Zip Code

This chart shows 85032 was the busiest zip code in 2018, with 942 sales transactions. It also shows that the top 10 zip codes accounted for 6,834 sales, which is more than every other city in the Valley except Mesa (7,144 sales).


Chart 2: Zip Codes with the highest median sales price

This chart shows 85018 as a highly desirable zip code, with a median sales price of $744,900. It also shows 4 other zip codes with median sales prices above $400,000 (85012, 85054, 85003, and 85016), and all 10 zip codes had median sales prices greater than $350,000.

Zip Codes 85018 and 85050 are also in Chart 1, which means these zip codes are highly desirable and have a lot of sales each year.

Chart 3: Zip Codes with the lowest median sales price

There are a number of zip codes in Phoenix where the median sales price is near to, or below, $200,000. The least expensive zip code in Phoenix is 85009, with a median sales price of $154,000.

Zip code 85037 is also featured in Chart 1, showing there is a lot of sales activity in this zip code with a median sales price of $199,900.

-

- Chris Butterworth

-

Simple MLS Charts is supported by readers like you. If you find these charts useful, please consider becoming a patron with a small monthly pledge on Patreon.

* All chart data represents single-family detached homes only. Information is believed accurate but not guaranteed.

 

Avondale up 6% in January

The Median Sales Price in Avondale was up 6.1% YoY from last January ($243,000 vs $229,000), and up 20% from two years ago ($202,000). Lots of ups and downs from month to month, but the trend is clearly upward.

-

- Chris Butterworth

-

Simple MLS Charts is supported by readers like you. If you find these charts useful, please consider becoming a patron with a small monthly pledge on Patreon.

* All chart data represents single-family detached homes only. Information is believed accurate but not guaranteed.