Covid 19’s effect on the Phoenix Real Estate Market was only temporary and did nothing to slow growth. Although Covid’s effect on small businesses was devastating, it only slowed "pending" housing sales during the month of April. The overall effect of Covid was so small that record breaking sales were recorded in the Phoenix MLS for 2020.
(This article as 1st published on my Metro Phoenix blog.)
The below graph indicates pending sales. These are properties where a home buyer wrote a purchase contract that was accepted by the seller. 2020 Is shown by the green line. 2019 is purple and 2018 is blue/aqua. Note how homes stopped going under contract in week 11 (early April) when the initial "stay at home" requests started. They began trending up again in week 18, which was the first week of May.
As you can see, and beginning in week 21 (end of May), pending sales far outperformed the previous two years. That trend has continued into 2021 (shown in red). Pent up demand for homes, fueled by exceptionally low and record-breaking interest rates, was not to be denied. MLS home sales in the Phoenix Real Estate Market for 2020 broke the previous record set in 2005.
Top 10 MLS Sales Years Since 2000:
- 2020 - 105,376
- 2005 - 104,133
- 2011 - 100,678
- 2019 - 99,383
- 2004 - 98,294
- 2017 - 95,837
- 2018 - 95,823
- 2009 - 91,748
- 2016 - 90,205
- 2010 - 90,103
Top 10 MLS Sales Months Since 2000:
- Jun 2011 - 10,856
- Jul 2020 - 10,540
- May 2019 - 10,527
- Jun 2005 - 10,216
- May 2018 - 10,094
- Oct 2020 - 10,038
- Dec 2020 - 10,021
- Aug 2005 - 10,003
- Mar 2011 - 9,973
- Mar 2005 - 9,940
The effect of Covid-19 was negligible on the Phoenix Real Estate Market. The most notable effect was buyers being asked to wear masks and gloves, not touch areas within the home, and disinfect their hands.
More Key Facts About 2020
Property listings dropped to incredibly low levels in 2020. This contributed significantly to the already strong sellers’ market. Listings steadily decreased from 9,000 in July and ended the year with 7,391 active homes for sale.
- Price per-square foot averaged $194 over the 12-months in 2020. It started at $182 in January and ended with $211 in December. 2019's average was $172.
- Distressed property sales, made up of lender-owned homes and short sales, were nearly non-existent at one-half of one-percent of all sales. High equity and low inventory in 2021 should prevent people going into foreclosure because it makes more sense to sell and claim equity.
- Days on Market (DOM) dropped to 44, the 2nd lowest since 31 days in 2012.
- Many popular cities in the the metro area turned over their housing inventory twice per-month during the last 6-months
- New home builders sold more homes than any time since 2005
Call or text me at 602-300-0374 with any questions. ~Ron
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