As with most of the country, the Phoenix real estate market is wild right now. Inventory is down, and demand is high. These two things spell an increase in prices.
The question is, how low is inventory and how high is demand?
I pulled up some stats yesterday, and the numbers are telling. At the end of August, the city of Phoenix had about 1,800 active real estate listings. When you compare this number to 2019 and 2018, you release that this number is low. In August of 2019, the Phoenix real estate market had ~2,800 active homes for sale. In 2018, Phoenix had ~3,500. All buyers are feeling this lack of inventory.
What about demand? Some might think that because of COVID that maybe the demand for real estate is down. Believe it or not, that is not what's happening.
For understanding demand in the market, I took a look at "Listings Under Contract". This stat essentially tells us how many listings are going from active to having a contract on them. One might expect that reduced inventory means a reduced number of "Listings Under Contract." Again, unfortunately, that is not what we are seeing.
In August of 2019, Phoenix saw just under 2,000 listings under contract. This year we are seeing even more (~2,200 Listings Under Contract). These two stats help define "low inventory" and "how has demand been affected?"
For more Phoenix Real Estate Market Updates, check out https://azdigest.com.