2020 Phoenix Housing Market

By
Real Estate Agent with Value Added Service, 602-620-2699 SA5376460000
https://activerain.com/droplet/5q5j

Reporting on the 2020 Phoenix Housing Market  - for the 52nd week of 2020 active listings are down a whopping 52%!   There are many factors that contribute to low inventory in housing nationwide.  Many homeowners have already achieved low interest rates for their homes and aren’t selling at this point in time.  Baby boomers are aging in place, some homeowners think there will be a housing buble, but millennials are now first-time home buyers and snapping up homes as the 2nd largest segment of the population .  New construction has not kept pace with the population growth or demand in the Phoenix Metro Area.  Since 2010 builders have not kept pace and are still behind.  There are now lotteries and waiting lists for lots in new home subdivisions. Competition is fierce and strategies have changed in order to secure a contract with multiple offers being commonplace. 

The seasonal trend shifted this year due to Covid.  Listings that were entered into the MLS in March stalled as showings screeched to a halt with the increasing news of the pandemic.  But soon enough buyers and sellers received the news of how to practice safely buying homes, and many realtors resorted to virtual showings and open houses.  Demand surged!

2020 Phoenix Housing Market

 

Frequently, I’m asked about various price ranges.  To give a true picture of Active Listings by price range this chart reflects all of the homes by price range in various shades of green!  Notice the HUGE drop in affordable housing.  Just this week, I listened in on a call (my second on the topic of diminished affordable housing).  The speaker is building manufactured/modular housing projects popping up in several parts of the country to solve this increasing problem.  More on this in another post.

 

Active Listing Counts by Price Range 2020 Phoenix

With so few listings and more buyers than sellers, you can bet that homes are selling over list price.  According to data from Realtor.com, shared by ABC 15, the Phoenix Metro Area can expect an approximate 11% increase in sales prices over the 2020 numbers, and 2021 is still red hot!

The largest number of homes selling over list price are between price ranges $200,000 and $300,000.  The total number of sales over list price is 36.7%, approaching the highest number since 2005.  The highest amount selling by price category is $2 - $2.5 million.  So paying over list price isn’t just for lower prices!  Second in that category are homes priced from $2.5 - $3 million.

 

Listings selling over list price 2020 Phoenix

 

How fast does it take to sell a home in Maricopa County?  Just 41 days!  Ignore the last bar in this graph as as that's for the first few days in January so not represented in full.  This is the fastest time in the last 5 years for selling a home, outside of October and November, 2020 when homes sold in 38 and 39 days. 

Average Cumulative DOM 2020 Phoenix Housing

The gap between list vs. sale price has narrowed to one line on this chart.  Notice that during the housing recession between 2010 and 2011 that opportunities to purchase a home for less than list price existed.  If a home doesn't sell in 40 days in this market, there are other factors weighing on that sale.  It's over-priced, has leased solar panels, or is in a horrible location.  If a home backs to a busy road, that isn't as bad as it used to be, but if it's over-priced it will lag on the market. 

List vs Sale Price 2020 Phoenix Housing Market

On to sales.  2020 reflected a surging housing market that almost surpassed the highest number of sales in any year since 2005.  A total of 100,654 homes were sold, narrowly missing 2005 total of 103,177 sales.  Expect that pace to continue as more businesses move to Arizona.  According to "Crane Watch" there are 10 significant developments in the bilions that have either started construction or soon will be across the Phoenix Metro Area. 

 

Sales per Year 2020 Phoenix

If you are looking for a seasoned professional who understands the current sales market to sell you home, give me a ring!  

 

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Rainmaker
1,627,471
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Jan,
Those are some daunting statistics.  It makes my head hurt and glad I'm not in the market as an agent, buyer, or seller. Hang in there. It's a wild ride. 

Jan 07, 2021 06:16 AM #1
Rainmaker
284,424
Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

Good morning Jan Green and thank you for such a detailed and informative market report. It looks like a great year ahead!

Jan 07, 2021 08:36 AM #2
Ambassador
3,988,138
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Listings are down in my area as well Jan. Hopefully things will pick back up soon. Just know that through adversity great things can be achieved!

Jan 07, 2021 12:47 PM #3
Rainmaker
1,049,821
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Yes Carol Williams it is daunting.  Listings are gold right now!  I just put in a showing request this  morning for a brand new listings and the only 30 minute time slots available were 1 and 6!  Getting creative costs money in this housing market and it's frustrating seeing sellers drop $ to agents ;( 

Jan 07, 2021 01:18 PM #4
Rainmaker
1,049,821
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

I bet your market is similar Rocky Dickerson !  It's a crazy year and will slow down a bit this year, but not by much.  Have a great day and thanks for stopping by!

Jan 07, 2021 01:19 PM #5
Rainmaker
1,049,821
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Our market hasn't stopped through the holidays Debe Maxwell, CRS .  Todays showing of a home that's been on the market since this morning. I fully expect to be one of 40 showings today - no exageration!  Have a great day!

Jan 07, 2021 01:21 PM #6
Ambassador
3,185,866
Anna Banana Kruchten CRS CRB, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

2021 started out fast and it is going to continue to keep on keeping on.  Great report Jan!

Jan 07, 2021 02:09 PM #7
Rainmaker
1,049,821
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thanks Anna Banana Kruchten CRS CRB, Phoenix Broker ! Yes a big start to the year.  Here we go!

Jan 07, 2021 04:07 PM #8
Ambassador
2,170,272
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

We are literally sold out in homes priced up to 700K - and and there is less than half a month for the rest of the inventory. 

Jan 09, 2021 07:10 AM #9
Rainmaker
1,049,821
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Wow! Your market is crazy Debb Janes EcoBroker and Bernie Stea JD !  I bet you are on your toes all the time looking for available homes!  Thanks for your review and comments!

Feb 08, 2021 02:35 PM #10
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Rainmaker
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Jan Green

HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN
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