2^nd Issue of February 2007

Time-on-Market Analysis

The Average Days-on-Market reached a new record high in December. When the Phoenix market was in equilibrium, this number was typically between 60 and 70 days. Average days-on-market is the average number of days houses that have been sold were listed. The graph below illustrates the drop in this number as the market began to gain sales velocity about June 2004. It bottomed out about August 2005 and has climbed steadily since. It has now shot right past the normal range to a current all time high of 87.7 days.

Note that the data points for October 2004 through January 2005 are excluded because the method by which they were calculated provided results which were drastically distorted. We should also note that there were numbers as low as 5.5 days reported during that time period, again the calculation by which those numbers were arrived at was faulty.

Commentary

Per the information displayed on the graph above, there is no indication of a change in the pattern of increasing days-on-market that has been ongoing since August 2005. Another interesting phenomenon is the flip which occurred in mid 2005 in the relationship between days-on-market for single family detached homes and that same measurement for condos.

Copyright® 2007 - This information is compiled and written by Ultimate Information Systems, Inc. Use of this article, in part or in its entirety, is expressly prohibited without written permission.  Click here to request limited rights to reuse this information.