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October, 2021 Phoenix Housing Report

By
Real Estate Agent with Value Added Service, 602-620-2699 SA5376460000

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?

 

Active Phoenix Housing Report October 2021

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. 

Active Listings under $1 million Phoenix October 2021

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?

 

Active over $1 million Phoenix October 2021

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.  

Avg Cum DOM Phoenix October 2021

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. 

Average Cum Days on Market Under 1 million Phoenix October 2021

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.

Avg Cum DOM Over $1 million Phoenix, October 2021

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!

Foreclosures Phoenix October 2021

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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Comments (12)

Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Jan I loved your introductory paragraph Real Estate is so local the trends do matter but it is all local, Endre

Nov 11, 2021 10:57 PM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Jan - there is much speculation about the end of the foreclosure moratorium.  I think that too will be local.

Nov 12, 2021 03:45 AM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

Those are very interesting charts, and easy to follow. Your levels of inventory have definitely been lower than "normal" for the last few years. It'll be interesting to see what these charts look like when 2022 is added!

Nov 12, 2021 05:41 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Hi Jan,
That's a lot of information, confirming that it's imperative for buyers and sellers to work with an experienced agent who knows the local market!

Nov 12, 2021 06:29 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jan, our market is softening too, but the inventory is still so low.  Great report for Phoenix.

Nov 12, 2021 06:43 AM
Debb Janes
Nature As Neighbors - Camas, WA
Put My Love of Nature At Work for You

Same trends going on here. So important, as you mention, to pay attention!  Have a wonderful day, Jan. D

Nov 13, 2021 07:19 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thank you for commenting Endre Barath, Jr.   We have such a favorable business climate that even Grant Cordone is opening up an office here.  2022 should be very interesting!  Have a great Sunday!

Nov 14, 2021 09:06 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

So true Grant Schneider !  The sheer demand will gobble up any foreclosures.  Homes are being sold by investors before they hit the market thanks to the number of trolls out there! 

Nov 14, 2021 09:07 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Very true Kat Palmiotti !  2022 will not be a blip on the RE map.  I just saw an ad for investing in a Smart Neighborhood via blockchain technology - now that makes headlines!

Nov 14, 2021 09:08 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thank you Carol Williams !  It is so important to know that an agent is representing the best interests of a client.  Have a wonderful Sunday!

Nov 14, 2021 09:09 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

I bet you're experiencing the same housing market Joan Cox .  Thank you for commenting!

Nov 14, 2021 09:09 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Yup - as I suspected Debb Janes EcoBroker and Bernie Stea JD !  These statistics aren't new.  I've hesitated to write housing reports as they are repeats so skipped a month.  On to a different topic.  Have a great day!

Nov 14, 2021 09:10 AM