One of the topics recently discussed in the Coldwell Banker Bishop Realty offices was the pace of change in the world.
As time passes, it seems, our short memories are quick to forget how things were. For example, comparing the Payson and Star Valley real estate markets from September of 2008 with today it might appear the Rim Country market is poised for a climb back to some level of normalcy.
In September of 2008, there were 549 homes for sale in Payson and Star Valley. And back then we had a two-year supply of homes on the market.
As of today, there are 241 homes on the market, which equates to a little less than a seven-month inventory. (Many consider a six-month inventory balanced).
Back in 2008, we had 46 homes for sale in excess of $1 million and today there are seven listings in that price range, which equates to a 3.5-year supply.
Today, the fastest selling price range is between $100,000 and $200,000 vs. $200,000 to $500,000 in 2008.
Pine and Strawberry are showing a similar track to Payson and Star Valley.
In September of 2008, there was a 17-month supply of homes and today there is approximately an eight-month supply. The inventory for sale is down from 154 homes on the market to 83.
It appears that the second home market recovery may take a little longer.
Affordable housing has long been a topic of discussion in the Rim Country.
The opportunity for low-cost housing has never been greater.
In Payson and Star Valley, there are 52 residences on the market under $125,000 and there are eight in Pine-Strawberry. The principle and interest payment on a 30-year fixed mortgage for $125,000 at 4 percent would be approximately $597 per month (This does not include tax and insurance costs).
It appears that the housing market in the Rim Country is not far behind the Phoenix metro area in achieving a balanced housing inventory.
RisMedia reported that the 90-day rolling price average in the Phoenix metro area has shown an increase of 2.5 percent. Let’s hope we continue to follow the Valley’s real estate trend.
Ray Pugel is a designated broker with Coldwell Banker Bishop Realty. Contact him at (928) 474-2216.