The chart below shows the average sales price for Gainey Ranch in $’s per square foot quarter by quarter over the last 12 years:
After a very strong 2012/2013 period, you’ll notice that the market this year has begun to flatten out. Gainey is now at an average sales price of $294 per square foot. This is up considerably from our low point of $205 in the middle of 2012 but still well below our high point of $376 in the middle of 2007. The market is definitely sluggish this year . . . only 35 sales year –to-date Sept 1 versus 59 sales last year at this same time.
What would explain the quiet market? Well, there are a few things . . . the Canadian dollar has lost about 10% in value versus the US dollar so Canadian buyers are scarce. Our short sales and foreclosures are gone so the investors have moved on to other areas of the country. And regular buyers are just a little bit put off by our quick run up in prices over the last 24 months. So we’re in a quiet time.
Where are we going from here? I think Gainey prices will see a slow but steady appreciation over the next few years as the economy continues to rebound and consumer confidence improves. Let’s face it . . . as the baby boomers push into retirement, they are all looking for a home with 345 days of sunshine per year. We have it! All they need is to be able to sell that family home in Chicago (or Calgary, or wherever) so they can buy here in Scottsdale!
So my advice is . . . buyers strike now while prices are soft, and sellers . . . be patient, your time is coming!