It’s not often that something this AWESOME hits the market, and in one of the coolest communities in down town Phoenix to top it off. This 1927 bungalow just hit the MLS today at a cool $325,000 in an area where homes are being snatched up faster than you can say…market report, which I”ll get to shortly, but before you read that…Click here to see it!
Market Update for Coronado
There are currently 15 active listings in Coronado ranging in price from $99,999 at 2215 N. 13th to 810 E. Palm (our showcased property above) at $325,000. The median asking price is at $169,000 and the average asking price per square foot is $138.87. While 810 is the highest priced property, it does not have the highest asking price per square foot. That is held by the property at 2041 N. 12th. More importantly, what’s actually sold in Coronado?
Since the beginning of the year, 17 properties have changed hands in the MLS. From the low point of $20,000 (2206 N. 9th) to the high point at 1280 E. Edgemonte @ $272,000, in almost every case, the sold price was higher than the asking price. Average price per square foot in the area is hovering around $124.00 and it’s taking about 64 on average to close.
Absorption Rate is a measure of how long it takes for the currently active homes on the market to be sold. It is calculated like this:
Number of Days measured = 365 ( in this case, we’ll look at the total number of sales in the past 365 days, which is 126)
Number of Homes Sold = 126
Number of Homes on the Market = 15
The rate of home sales is 2.896 (365/126)
The Absorption Rate is the number of active homes divided by the rate of home sales. In this case, 5.17 (15/2.896).
In simple english, it would take approximately 5.17 months based on an annual measure to sell all 15 homes that are currently active if nothing else came on the market.
If we squeezed the time frame to 3 months, it looks more like 3 1/2 months absorption. Anything between 5-7 would be considered a balanced market. Currently, Coronado is quite a ways from balanced, even though overall, the valley is approaching a more balanced market. But that really remains to be seen.
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