The Phoenix Housing Market includes extremely low inventory, rising prices and quick sales. Phoenix has been known for its dynamic, affordable housing market, with extreme highs and lows. Currently, the Phoenix Housing Market for June, 2020, is a steadily rising market, but we've recently experienced some solid sales gains in different parts of "the valley."
Check out this chart for Active Listings as of 7/5/2020. Current inventory for Maricopa County only is down year over year by 42%! That's almost an unbelievable drop in inventory. It's clearly down year over year, but also down every year during the last 4 years.
Charts for this report were provided by subscription to the Cromford Report. Please don't plagiarize!
During this COVID-19 pandemic, one would expect major defaults on loans. This report may be early in production, but for the month of May, there were only 75 homes who were more than 3 months late on mortgage payments for an area of 1.2 million homes. I'm saying early in production because June's numbers aren't posted yet, but also because you'd have to miss three mortgage payments or more to be included in this chart. Maybe a couple more months will be different? That remains to be seen.
Listings Under Contract took a dive in March reflect contracts cancelled creating that green "U" shape. But check out the come-back! It's clear contracts declined after the "hot" summer months with cancelled contracts.
Sales prices aren't dropping during the Pandemic. The current Median Sales Price is $320,000. That price is up 12% year over year!
Since contracts dipped, the number of sales follows suit and is reflected in this sales rate. The total sales to date are 91,784. If you look backward at August, 2019, the total sales for that month last year were 91,948. Comparing year over year and it's clear that had the pandemic not occurred, sales volume would be higher than 2019, and could still exceed last year.
It's very difficult to know how the market will turn after this point in time due to increased COVID cases. The lower inventory is a sign of fewer listings as some aren't willing to open their homes to the public. This shortage in inventory is putting pressure on prices in general, especially for homes priced under $500,000.
For more information about a city, a zip code, or a price range, please reach out to me!