More evidence of a ‘slightly cooling’ Market
Posted on November 24, 2021 by Laura Lucky
Cromford Daily Observation ~ On November 11, the average closed price per square foot across all areas & types slipped below 100% of the average list price per square foot for the first time since March 18. We waited a while to report in order to ensure this was not a blip. The percentage on November 11 was 99.99% and it has now dropped to 99.92%. Not a blip.
This signals that the market is cooling slightly. However the long term average is 97.25% and prices still tend to rise when the percentage is above 97%. So this should not be taken as a sign that sales prices may reverse direction any time soon. If it were to drop below the long term average then we would have good reason to become more pessimistic about prices.
‘The market is cooling slightly’ based on the ‘new’ list-to-sales-price trend that sellers, on average, are taking a slight discount, which equals fewer bidding wars. This graph clearly shows the trend since Q2, using Scottsdale as our example:
100 = full price on the horizontal access / List Price / Sold Price Ratio
Sellers are still getting the better part of their appreciated prices.
Buyers should be finding more choices.