I track a variety of statistics and update many reports during the first few days of each month. Here is another: year over year price per-square foot. Click here to learn why price per-square foot is a more solid indicator than average price.
This chart shows the total number of homes sold each month and the corresponding price per-square foot. The price per-square foot is obtained by dividing the average sales price by the average square footage of all homes sold in a calendar month.
The average price per-square foot was $175 in August of 2007 and is $127 for August 2008. The August number was actually higher than July's. There was a similar spike from December 2007 to January 2008, but the downward trend did not stop.
This downward trend has not given any solid signs off easing off. A decrease in the the number of foreclosures on the market will be the beginning of the end of dramatic price declines.
Note: Information obtained from the Arizona Regional Multiple Listing Service 9/2/2008
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