The Phoenix Housing Market Update for April, 2020 charts are provided courtesy of subscription to the Cromford Report. All sales from the Arizona Regional MLS in Maricopa and parts of Pinal County are scrubed for accuracy and reports are provided that would not otherwise be available by the MLS alone. May Observations from the Cromford Report:
" May 1 - Among single-family listings there has been a 7% decline in listings under contract between April 1 and May 1. This is the opposite of last year when we saw a 7% increase. Obviously the difference between this year and last year was primarily caused by the COVID-19 pandemic. However we can see that it did not affect all price ranges equally:
|Up to $225K||down 6%||down 8%|
|$225K - $350K||up 8%||down 1%|
|$350K - $600K||up 14%||down 10%|
|Over $600K||up 9%||down 20%|
The price range under $225K was little affected, being constrained by the lack of supply anyway. The lower mid-range from $225K to $350K did relatively well with almost no decline in 2020. After $350K things get a lot worse. The upper mid-range from $350K to $600K was booming last year with listings under contract gaining a massive 14% during April. This year it dropped 10%. The top end over $600K took a bigger hit, with a drop of 20% in 2020 in contrast to a very heathy gain of 9% in 2019."
PLEASE DO NOT PLAGIARIZE
Although active listings have risen 32% from March 14 to May 2nd; active listings are down significantly year over year by 18%! Notice the dip in inventory from mid April to May3; that's an 8% drop in inventory. Showings are down, however, contracts are being written.
How long does it take to sell a home in the Phoenix Metro Area? This chart reflects a significant drop in days on market to 48 days! For April 2019, it took 67 days to sell a home in the Phoenix Metro Area. These statistics are for all prices and cities within Maricopa County.
So how is the current pandemic effecting prices? According to this chart, prices continue to rise. Median prices rose from $300,000 to $305,000 from March to April, 2020, and have outpaced the median sales price for the top of our housing market for June, 2006, when that number peaked at $265,000.
This new chart illustrates contract activity, a good indicator of the change in activity specifically tied to COVID-19. Accepted contracs are below normal, but the number of contracts are rising. Our annual sales volume peaks in June and dips during Thanksgiving and Christmas. As you can see by the blue line, listings that were under contract and came "back on the market" are near normal numbers, prior to COVID.
Sales for April were 6872, down from 9332 a year ago - a 36% decline in sales from the previous month. This is to be expected since showings are down as well. As you can see the highest months for sales in the Phoenix Metro area typically occur during May through July, the summer months.
To get a full analysis of the loss in sales for 2020, this next chart is year over year total sales. Notice the drop in total sales from March to April (97,666 to 95,135) is a 3% drop in total overall yearly total sales. In the grand scheme of sales, this drop isn't as large as it appears from the previous chart as we're calculating all sales for the year.
Time will tell and next months' charts will be interesting to see if home buyers start viewing homes again, creating more pending sales.
If you Or someone you know is interested in more information about our Phoenix Area housing market, please reach out to me!