Phoenix Housing Market Report, October, 2020
The Phoenix metro area continues to feel the effects of limited inventory, rising prices and multiple offers for home sellers. Watching the market continuously is an understatement as buyers anxiously wait for their dream to become a reality.
Reports are provided courtesy of my susbcription to the Cromford Report, a source I rely heavily due to their timely and numerous reports! Please don't duplicate or share without written permission.
Active homes for sale as of week 45, November 7, is down 40% year over year for the same week. To give you an idea, we should have at least three times this amount of inventory to be in a normal, balanced market. In comparison, there were 20,083 listings in 2016 in week 45!
Currently, it takes 30 days to sell every home we have in Phoenix! In November, 2019 it took 50 days to sell all the inventory in the Phoenix metro area. In 2011, 149 days was a long time to wait to sell a home, but remember that was the bottom of our housing market in Phoenix with MANY short sales and foreclosures.
An interesting, new chart by the Cromford Report has been created for the current sellers market to reflect home sales over list price. Notice these are by price range and comparative by year increases. Currently, 35.7% of homes are selling on average over list price. In July, 2012, that rate was 35%; in August of 2009 that rate was 38.6% and in May of 2005 that rate was 38.5%.
Notice that the price range $200,000 - $300,000 receives the highest number of sales over list price. This is partly due to the vanishing inventory in those price ranges. Having more buyers than sellers creates a frenzy in many areas in Maricopa County.
Jul
Speaking of a sellers market; take a look at list price versus sales price for Phoenix, October 2020. The gap has narrowed as prices continue to rise with multiple offers. Appraisers are having a tough time as multiple offers raise prices and home sellers perceive those rising offer prices as appraised value, however, that's not so! Appraisers are challenged with comparing comps accurately with sales during the last 90 days, and they must include about 6 sales, of which one can be a pending sale. Appreciate markets help appraisals to a degree, but appraisers must still look for paired sales to evaluate homes under contract and not yet closed.
One last chart! How many buyers are paying cash? Fewer than before the pandemic. Cash buyers are down about 7 - 8% since March, right when the pandemic was a "thing." Pulling back on reserves and financing might have felt like a smart idea for investors! We're at the same level as 2008.
How much are homes appreciating? Good question! This charge breaks it down by price range. Check out the over $3 million price range!
If you are looking to buy or sell a home in the Phoenix Metro Area, make sure to contact a knowledgeable agent who understands how the market is behaving!
And if you're looking for more data on specific price ranges, give me a ring. These reports are by subscription of the Cromford Report. Please do not duplicate or share without written permission.
HomeSmart Elite Group
8388 E Hartford Dr., Suite 100
Scottsdale, AZ 85255
(602) 620-2699 DIRECT
www.AZGreenRealty.com
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