Before we get into the Phoenix Real Estate Market Report January 2020, I have a commentary written by Tina Tamboer. She is the Senior Housing Analyst with the Cromford report. She was nice enough to let us use her summary of the Greater Phoenix Metro area as a backdrop for what is happening in Phoenix this month. Here is her commentary…….
- The Greater Phoenix Metro Summary Analysis Real Estate Market Report
- Below is a snapshot of Phoenix’s Real Estate Market Statistics for December 2019
- A look at Phoenix’s current Sales Price. Real Estate Market Report
- What does this mean if you are a Seller or Buyer?
- Homes For Sale in Phoenix AZ
- Below you will see the links for the other cities in the East Valley:
The Greater Phoenix Metro Summary Analysis Real Estate Market Report
Active Supply is Down 32%
Median Sale Price up 11% and Expected to Rise
The urgency for buyers cannot be stressed enough; real estate prices are not projected to decline in the Greater Phoenix area in 2020. There isn’t one measure from any angle that supports that theory. Not only will they not decline, they will not stop rising this year at the current levels of supply and demand.
On January 9th, active supply was counted at just over 12,000 listings for all of Greater Phoenix. This is down 32% from this time last year and excruciatingly low. To put it in perspective, a “normal” level of inventory should be at least 28,000 – 30,000 active listings in the MLS for a metropolis the size of Maricopa and Pinal County. The last time inventory was recorded this low was in 2005 at 9,000 listings with a population of 3.8M. Now Greater Phoenix has 4.8M people with less than 1% of existing housing available for sale. With monthly sales up 17% over last year, fueled by population growth, job growth, income growth and low interest rates in the area, sellers have few reasons to sell below market value. It’s not logical to expect prices to soften in this environment.
Buyers who have been waiting for sales prices to decline before they purchase have nearly missed the boat. This is because while they were watching prices rise, the payments for those same homes declined for a year with declining mortgage rates. However, when mortgage rates stabilized 6 months ago, hovering around an average of 3.75%, payments started to creep up again.
In short, if someone wants to purchase a home and they have the means, then they should lock into one. They should expect competing offers, expect to lose some opportunities, and expect to do some upgrades. They should also expect to live in their new home for at least 5 years to build up enough equity to mitigate the risk of ups and downs in the future.
This is an exciting time for those who need to sell. Anyone who owns property has probably been contacted multiple times by multiple means throughout the year by people wanting to buy their home. While sellers are under much less pressure to perform repairs and upgrades in order to sell their home, it doesn’t mean that they will sell it as quickly or for as much as those that are move-in ready. But, it will sell in this market.
Those who are considering selling to an internet investor buyer (aka iBuyers who offer some up-front certainty and convenience in the selling process), should know that they still have negotiating power in the transaction and have the option to be represented by a Realtor if they choose.
Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report
©2020 Cromford Associates LLC and Tamboer Consulting LLC
Below you will find the statistical breakdown and more for the Phoenix area Real Estate Market Report December 2019 ( with prior MO and yr data).
Below is a snapshot of Phoenix’s Real Estate Market Statistics for December 2019
A look at Phoenix’s current Sales Price. Real Estate Market Report
In December, Phoenix’s Median Sales Price was $274,250 as compared to November’s $260,000( a 5.5 increase). Currently, the YTD average Median price in Phoenix is $258,500. Homes in the $300,000-$500,000 range were a higher percentage of sales for the month.
What does this mean if you are a Seller or Buyer?
Real Estate Market Report
As the chart above shows, Inventory in Phoenix is at 1.35 months down from last months 1.69 (decrease of 20.1%). This is a dramatic decrease from the last two month’s, but in line with what the forecasters were saying. The forecasters believe that inventory levels will remain low for the foreseeable future. Sellers have the advantage due to such few Homes on the Market.
Buyers will have to make competitive offers. Also, as few contingencies as possible. Buyers will need to act quickly. So they can beat out the competition with the offer.
If you would like to see specific homes as they come on the Market, click here to get email updates.
Homes For Sale in Phoenix AZ
Below are Homes that have come on the Market in the last 7 Days around the Median price range. Also below the pictures, you will see a Chart of all the Phoenix homes by price and Type:
Below are all the Homes available in the city of Phoenix by Dollar amount and type:
Contact the Shirley Coomer Group at Keller Williams Realty Sonoran Living