Chandler AZ Home Prices May 2012 ~ Be careful what you read

A friend sent me the link today to the post by Adam Kress, Phoenix Business Journal.  “Phoenix Home Prices Expected to Fall 11% This Year” really made me stop say say “Huh?”

First I checked the date on the article believing this must have been written a year ago, but it wasn’t.  The date on the post was 5/8/2012.  So, I read the article with a sense of  “are you kidding me?”

Why was I so taken aback?  The article reported that the Case-Shiller Report indicates that Phoenix Area Home Prices are going to fall drastically this year.  I wondered what they know that no one else knows since every Realtor in the Valley is well aware that low inventory is driving prices up and fueling bidding wars across the Valley.

Then I read this statement:

The research shows average home prices around Phoenix fell by 1.2 percent in the past year and 4 percent nationwide. However, while Arizona’s outlook is for an 11 percent drop this year, the national forecast is for a decrease of just 0.8 percent.

Which is absolutely incorrect and now I got mad.  It’s reporting like this that confuses the public.  Gloom and Doom sells, we know that.  BUT..what is happening in the Phoenix Metro Real Estate market is NOT Gloom and Doom.  We are seeing double digit appreciation as our values rise due to low inventory.  So that one statement made the whole article ridiculous.

Here’s a snapshot of the last 2 years of average sales price per square foot in Chandler and another of the average sales price per square foot of homes in the Phoenix Metro Area.

Chandler Average Sales Price per Square Foot January 2010 - May 2012

Chandler-az-average-home-price-per-square-foot

 Phoenix Metro Average Sales Price per Square Foot January 2010-May 2012

Phoenix-Monthly-Average_Sales_Price_per_Square_Foot

Now, you tell me.  Does this look like a 1.2% decline in home prices in the last year?

Yet another reason the public should always investigate the facts before taking any report they read as fact.  Granted, no one knows what the future holds and whether this buying frenzy will continue, but I’m pretty sure I won’t be listening to any “predicting” by Case-Shiller anymore.

 

About Amy Jones Group

Amy Jones is the owner of Amy Jones Group Keller Williams Integrity First. The Amy Jones group has been recognized as the #1 Real Estate Team in Chandler by the Phoenix Business Journal and voted Best of Our Valley for 4 years.

The Amy Jones Group specializes in real estate in Chandler, Sun Lakes, Gilbert, Mesa, Tempe, Ahwatukee, and Phoenix.