Tonto Verde inventory was nearly depleted this past spring and fall, and only 3 properties sold in the last 3 months. The median price of those properties was nearly $800,000, and that is responsible for the 40% spike in single family detached home sales prices for the Tonto Verde Market.
Inventory shortage. How much and why: Building activity ground to a virtual halt when the housing market collapsed in 2008. Zillow Senior Economist Aaron Terrazas estimates that this left a shortfall of millions of homes on the market as builders have not been able to pick up the slack. In 1985-2000 building permits were issued at a rate of 3.9 per 1000 residents. Since 2008, that has fallen to 1.9 permits issued per 1000 residents. Zillow estimates it will take up to five years of building at the current pace to recover. The National Association of Realtors shows inventory declining for 41 consecutive months. The good news (?!) is the decline is slowing. This shortfall is driving the current seller’s market. To add to the mix, existing homes are getting older. Remember all those permits issued in 1985-2000? It is a great opportunity for sellers to cash in, but be aware that you are still competing with new builds, and condition and your maintenance of the property have never been more important as older homes do not offer the same amenities as newer homes. We get asked all the time about our residential resale market, and the market is a sellers market with increasing median home prices BUT if a property has not been maintained or priced properly it will have additional days on market to sell.