The market in Phoenix is hot, in more ways than one.
Once again, the Phoenix metro has led the nation in year over year home price growth. In June 2020 sellers sold their homes for 99% of asking price. The average home went pending in 37 days and homes in hotter areas of the valley went from listing to pending in just 14 days.
Despite a spring slow down attributed to the COVID-19 pandemic, the market has rebounded nicely.
New home builders have seen an increase in sales of over 6% in the month of June.
The result is a market that clearly favors sellers.
But rising rental rates and historically low-interest rates have kept buyers in the market in spite of rising prices, competitive bidding wars for homes in the lower price ranges.
For the time being, sellers will remain in command of a market that is suffering from low inventory and high demand.
But all is not rosy in Phoenix. It had been a very hot summer keeping people indoors at a time when they might be out enjoying the outdoors. Arizona has also been a hot spot (excuse the pun) for COVID making showings difficult. And the latest complaint from listing agents is that appraisals have failed to keep up with the price increases.
This of course has caused problems for buyer’s agents who want to help their buyers achieve their dream but often are met with frustration. I can attest to the exasperation of spending an afternoon showing homes in 110+ degree temperatures, only to lose the bid to another anxious buyer.
The most interesting part is that in the next few months the weather will turn mild and even more buyers will descend on Phoenix. The weather will cool, but the market will likely stay hot.
Joe Domino is a Realtor® serving the Phoenix/Scottsdale area. Need more information? Or to Search for your next home, visit www.Scottsdale-AZHomes.com