Tempe, Az Market Trends and Updates 1-16-2012

MARKET UPDATESolutions Real Estate

· Current Real Estate Market Conditions for Single Family Homes· Trends in Pricing· Current Levels of Supply and Demand· Value Metrics

· Report for the week ofJanuary 16, 2012

· Presented by David DionSolutions Real Estatewww.SolutionsRealEstate.com - [email protected]

TEMPE, AZ

Powered by Altos Research LLC | www.altosresearch.com | Copyright ©2005-2010 Altos Research LLC

Median List Price

Median Lot Size

24.2

Percent Relisted (reset DOM)

1801

2.0

6 %

Median Number of Bathrooms

145

Inventory of Properties Listed

$ 96

Percent Flip (price increased)

10 - 20 acres

Median House Size (sq ft)

$ 165,000

33 %

3.0

Market Action Index

Median Number of Bedrooms

Asking Price Per Square Foot

n/a

Percent of Properties with Price Decrease

Buyer's Advantage

≠

±+

±+

=

=

Altos Research Value Statistics

Most Expensive Listing

Average Days on Market (DoM)

Bottom/Fourth

Lower/Third

Upper/Second

Top/First

This Week Real-Time Market Profile Trend

The Market Action Index answers the question "How's the Market?" by measuringthe current rate of sale versus the amount of the inventory. Index above 30implies a seller's advantage. Below 30, conditions give the advantage to thebuyer.

Supply and Demand

Characteristics per Quartile

27 42858

1042.0 43

3.0

13

151

3.0 70

127

8

10

10 - 20 acres

41

$ 139,000

13

2

71

3.0

not available

102.0

1346 not available

70

$ 99,900

4.0

197

not available$ 199,750

4.0$ 417,500

37

6

2015

Inventory has been lightening latelyand the Market Action Index has beentrending up. Though days-on-marketis increasing, these are mildly positiveindications for the market.

Monday January 16, 2012

David Dion | Solutions Real Estate | 480-332-5942 | www.

70

1656

2.0

The median list price in TEMPE, AZthis week is $165,000. The 281properties have been on the marketfor an average of 145 days.

Most expensive 25% of properties

Upper-middle 25% of properties

Lower-middle 25% of properties

Least expensive 25% of properties

Quartile Median Price Lot Size Beds Baths Age Inventory New Absorbed DOMSq. Ft.

No change

Strong upward trend Strong downward trend

Slight upward trend Slight downward trend±+

== ≠≠

≠=

TEMPE, AZCity Overview

Least Expensive Listing

Average List Price

Average Age of Listing

281

$ 6,850,000

$ 19,000

$ 267,405

37

Trend Key:

The market has shown someevidence of slowing recently. Bothprices and inventory levels arerelatively unchanged in recentweeks. Watch the Market ActionIndex for changes as it can be aleading indicator for price changes.

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Single Family Homes in


City OverviewTEMPE, AZ


Median PriceDespite this week's down tic, the market seems to have paused around this plateau. The Market Action Index is a good leadingindicator for the durability of this shift.

90-day Average7-day Average

Quartile PricesPrices have settled at a price plateau across the board. Prices in all four quartiles are basically mixed. Look for a persistent shift(up or down) in the Market Action Index before prices move from these current levels.

First/Top Second/Upper Third/Lower Fourth/Bottom

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Price per Square FootThe market plateau is seen across the price and value. The price per square foot and median list price have both beenreasonably stagnant. Watch the Market Action Index for persistent changes as a leading indicator before the market moves fromthese levels.


Inventory of Properties Listed for SaleInventory has been falling in recent weeks. Note that declining inventory alone does not signal a strengthening market. Look tothe Market Action Index and Days on Market trends to gauge whether buyer interest is changing with the available supply.


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Market Action IndexThe TEMPE market is currently in the Buyer's Advantgae zone (below 30), though not strongly so. The 90-day Market Action Indexstands this week at 24.20 so buyers should expect to find reasonable levels of selection.

Buyers/Sellers Cutoff90-day Average

Market Action Index per QuartileNot surprisingly given the overall Market Action Index, all quartiles are in the Buyer's Market zone with several months ofinventory given the current rate of demand for homes in the quartile. Watch the quartile for changes before the overall marketshifts. Often one end of the market (e.g. the low end) will improve and signal a strengthening market before the whole groupchanges.


Buyers/Sellers Cutoff

Residential house prices are a function of supply and demand, and market conditions can be characterizedby analyzing those factors. Watch this index for sustained changes: if the index falls into the Buyer’sAdvantage zone (below 30) for a long period, prices are likely in for a downward correction.

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Days on MarketThe properties have been on the market for an average of 145 days. Half of the listings have come newly on the market in thepast 85 or so days.


Days on Market per QuartileIt is not uncommon for the higher priced homes in an area to take longer to sell than those in the lower quartiles.


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Median List Price

Median Lot Size

24.8


1850

2.0

6 %


121


$ 83


not available


$ 149,900

33 %

3.0

Market Action Index



n/a


Buyer's Advantage

≠

±+

±+

=

=




Bottom/Fourth

Lower/Third

Upper/Second

Top/First



Supply and Demand


42 22329

1182.0 49

3.0

4

167

4.0 25

122

3

3

not available

42

$ 135,000

4

3

25

2.0

not available

32.0

1400 not available

25

$ 100,000

3.0

77


4.0$ 269,950

43

4

2080

Inventory has been lightening latelyand the Market Action Index has beentrending up. Though days-on-marketis increasing, these are mildly positiveindications for the market.



24

1792

2.0

The median list price in TEMPE, AZ85282 this week is $149,900. The 99properties have been on the marketfor an average of 121 days.






No change



== ≠≠

≠=

TEMPE, AZ 85282Neighborhood Detail


Average List Price


99

$ 420,000

$ 19,000

$ 170,487

44

Trend Key:


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Neighborhood DetailTEMPE, AZ 85282


Median PriceWe continue to see prices in this zip code bouncing around this plateau. Look for a persistent up-shift in the Market Action Indexbefore we see prices move from these levels.


Quartile PricesIn the quartile market segments, we see prices in this zip code have settled at a price plateau across the board. Prices in allfour quartiles are basically mixed. Look for a persistent shift (up or down) in the Market Action Index before prices move fromthese current levels.


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Price per Square FootThe market plateau is seen across the price and value. The price per square foot and median list price have both beenreasonably stagnant. Watch the Market Action Index for persistent changes as a leading indicator before the market moves fromthese levels.




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Market Action IndexThe TEMPE, 85282 market is currently in the Buyer's Advantgae zone (below 30), though not strongly so. The 90-day MarketAction Index stands this week at 24.79 so buyers should expect to find reasonable levels of selection.


Market Action Index per QuartileNot surprisingly, all quartiles are in the Buyer's Market zone with several months of inventory given the current levels ofdemand. Watch the quartiles for changes before the overall market shifts.




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Median List Price

Median Lot Size

24.8


1538

2.0

9 %


156


$ 98


not available


$ 139,183

38 %

3.0

Market Action Index



n/a


Buyer's Advantage

≠

±+

=

≠

=




Bottom/Fourth

Lower/Third

Upper/Second

Top/First



Supply and Demand


10 01685

1302.0 53

3.0

4

139

3.0 15

156

3

2

not available

52

$ 120,000

4

1

15

2.0

not available

42.0

1354 not available

14

$ 80,000

3.0

201


3.0$ 437,450

40

1

1678

Inventory is tightening and days-on-market is falling. The Market ActionIndex shows demand heating up.These are relatively bullish signs forprices.



14

1474

2.0







No change



== ≠≠

≠=



Average List Price


58

$ 799,000

$ 51,500

$ 202,681

43

Trend Key:


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Median PriceRecently prices in this zip have settled at a plateau even though they dipped this week. Look for a persistent up-shift in theMarket Action Index before we see prices significantly move from these levels.




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Price per Square FootThe value placed on homes seems to be trending up, despite the fact that prices in general have remained basically flat. Theseconditions can arise when inventory is light and a greater number of smaller homes have more influence on overall prices.




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Median List Price

Median Lot Size

20.7


2639

2.0

5 %


201


$ 129


10 - 20 acres


$ 302,500

36 %

4.0

Market Action Index



n/a


Strong Buyer's

≠

=

=

≠

=




Bottom/Fourth

Lower/Third

Upper/Second

Top/First



Supply and Demand


24 04968

1253.0 26

3.0

0

143

4.0 15

106

0

2

10 - 20 acres

24

$ 275,000

1

1

15

4.5

not available

12.0

1806 not available

14

$ 199,000

4.0

444


5.5$ 1,024,900

22

2

3200

Inventory is tightening and days-on-market is falling. The Market ActionIndex shows demand heating up.These are relatively bullish signs forprices.



14

2576

2.0







No change



== ≠≠

≠=



Average List Price


58

$ 6,850,000

$ 169,000

$ 608,688

23

Trend Key:


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Median PriceThough in this zip code this week saw relatively little price change from last week, the market seems to be show some signs ofstrength. Keep an eye on the Market Action Index to see if this short-term trend can establish itself over the coming months.




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Price per Square FootThe price per square foot is increasing a bit recently and overall price trends haven't shown a consistent upwardly push. This canimply that investment conditions are opportunistic. Watch the Remodel Index for a more detailed analysis of the investmentopportunity in the area.




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Market Action IndexThe TEMPE, 85284 market is currently quite strongly in the Buyer's Advantage zone (below 30). The 90-day Market Action Indexstands at 20.73. With several months of inventory available at the current sales rate, buyers should find ample choice.






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Median List Price

Median Lot Size

23.8


1548

2.0

6 %


120


$ 91


not available


$ 136,750

27 %

3.0

Market Action Index



n/a


Buyer's Advantage

±+

≠

±+

≠

≠




Bottom/Fourth

Lower/Third

Upper/Second

Top/First



Supply and Demand


35 32400

832.0 34

3.0

2

120

3.0 17

115

1

1

not available

33

$ 125,000

3

2

17

2.0

not available

22.0

1308 not available

16

$ 90,000

3.0

165


4.0$ 237,425

38

0

1606

The Market Action Index has beentrending down recently, but as days-on-market decreases also, there arenot strong signals for the direction ofthe market.



16

1460

2.0







No change



== ≠≠

≠=



Average List Price


66

$ 849,900

$ 75,000

$ 169,745

32

Trend Key:


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Median PriceAgain this week we see a downward notch for prices in this zip code. Pricing has been weak recently and versus their absolute-high level. At this point, we will be looking for a persistent upward shift in the Market Action Index as a leading indicator for atrough in prices.




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Price per Square FootDespite recently falling prices, the price per square foot has stayed reasonably flat. This implies that there's a portion of themarket being priced at a premium. You can investigate this condition in the quartile details.


Inventory of Properties Listed for SaleInventory has been relatively steady around these levels in recent weeks.


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Tempe, Az Market Trends and Updates 1-16-2012

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