The median price for a Valley detached home in March was $549,000, which is 27.3% above last year. The attached home median price in March was $345,000, up 15.4% over the last twelve months. We think prices will continue to move higher by following the seasonal pattern of reaching highs in the month of May before pulling back. Seven cities now have median price increases for detached homes over 20%, with two up more than 30%. It should also be noted that five cities have exceeded the historic price highs they made in the year 2006, with two more only fractional percentage points away.
The three-month average of total sales is now averaging 1,129 units a month, which is 39% above last year. Due to seasonal forces, we believe this average will reach 1,200 units, or higher, over the next two months and are very encouraged that sales continue to stay in this high range.
Inventory continues to decline and on April 1st stood at 742 units for sale. Then compares to 3,043 units one year ago. Continued high sales and lower inventory has again driven the “month of sales” ratio to new historic lows. It is now just 4/5 of a month, or just a little over three weeks. A year ago, the ratio was 3.7 months. This lack of supply is causing bidding wars amongst the many homebuyers and is the force driving home prices much higher.