The rumor mills are filled with a lot of speculation in national and local attention-getting headlines about the housing market. Some of them point to a softening market while others are predicting more of a normalized market for next year. While no one has a crystal ball, it's a good idea to keep a pulse on the market to know how buyers and sellers are reacting to the news and the housing market. Following the pending price per square for housing data can assist buyers and sellers make important real estate decision.
Reports are published using the Cromford Report market data and are by subscription so please do not copy.
Active inventory is still very low in the Phoenix area. As you can see from this report, as of 10/30/21, inventory is still lower than the previous four years with 7226 active listings. The seasonal trend for a market slow down before Thanksgiving and Christmas has started for the entire market, but what about price range?
Comparing the entire housing stock above to homes listed under $1 million, the chart below shows the same trend line. Low inventory and a slight downward numbers in Active listings is a seasonal trend. Home sellers avoid listing their homes for sale during Thanksgiving and Christmas unless they are very serious about selling at that time.
Now let's compare the entire inventory to homes over $1 million. This segment of the market has remained low during 2021, and inventory has dropped 13% since January, 2021. Those with cash are still buying homes! But how fast are they buying?
The time it takes to sell a house on AVERAGE has ticked upward 2 days. Not a big swing and this is a seasonal trend mirroring years past. Every peak on this chart reflecting higher days on market is in either January or February.
Reversing the search, homes up to $1,000,000 took an average of 28 days to sell in October. These numbers are an upward, seasonal trend so November will be higher.
Homes over $1 million took an average of 53 days to sell. The last data point on this graph is November, which isn't a full month of data. Having just sold a home over $1 million, I can say that there were constant showings and it sold in 6 days over list price. Notice this chart reflects data through 11/6/21.
With PPP funds no longer being distributed, notices of default and then foreclosures are expected to increase nationally. However, local numbers don't reflect that in Phoenix to date. When the pandemic was announced and funds were being distributed it's obvious that homes sold to 3rd parties dipped. In February 2020, 72 homes were sold to third parties. In October 2021, 20 homes were sold to third parties. For a city of 4.6 million residents, those numbers are barely a blip on the chart. Economics are saying that Phoenix won't experience a high level of foreclosures due to the jobs market, inbound residents, and companies that are relocating to Arizona. Time will tell!
For information your zip code and price range in the Phoenix Metro Area, please reach out to me. And if you're looking to buy or sell a home in the Phoenix area, make sure your agent can explain the housing market to help you with your purchase or sale!
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