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Tempe Real Estate Market Report March 2021

Before we get into the Tempe Real Estate Market Report for March 2021, I have a commentary written by Tina Tamboer.  Tina 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 Tempe this month. Here is her commentary…..

?️  The Greater Phoenix Metro Summary Analysis Real Estate Market Report

44% of Sales Closed Over Asking Price

New Listing Counts Lowest in Over 20 Years

?     For Buyers:

44% of sales through the Arizona Regional MLS have closed over the asking price in the last 30 days. The median amount over the asking price for all price ranges combined is $10,000 with a range between $1 to $310,000. (I know what you’re thinking, “$1 over? What is this, ‘The Price is Right’?” In some cases, yes.)

While 56% of all homes still sell for at or below list price, if you have a budget between $250K-$400K, the percentage selling over the list is highest at 52% with the median amount over asking at $10,000.  However, even if your budget is over $400K, a significant percentage is closing over the asking price.  Up to $800K, 42% have sold over the list price with a median escalation of $12,000-$15,000. From $800K-$1M, 30% sold over the list with a median escalation of $17,000-$20,000.  From $1M-$2.5M, 20% sold over list with a median escalation of $30,000-$50,000. Over $2.5M, only 2 sold over the asking price with a median escalation of $150,000.

Over the past 6 weeks, REALTORS® have added an average of 2,059 new listings per week to the Arizona Regional MLS.  During the same time period, an average of 2,312 contracts were accepted per week. This is what has caused the overall supply of homes to consistently drop and competition between buyers to escalate. While just over 2,000 new listings per week may seem like a lot, it’s actually the lowest rate for this time of year in at least 20 years. A normal level would be considered around 2,500 new listings.

?    For Sellers:

While supply is still 77% below normal for this time of year and demand is 17% above normal, demand has been dropping faster than supply over the last 30 days.  It’s not noticeable when one is in the midst of a contract negotiation today because sellers rarely notice when they’re getting, for example, only 15 offers instead of 25.  But consider last December demand was 35% above normal; at this rate, demand could be at a normal level in a couple of months and below normal by June.  This will not cause prices to decline because there are still a minuscule number of competing listings in the MLS, but it could mean that the second half of 2021 could look different from the first, especially if there’s a temporary boost in new listings after the forbearance period ends and the foreclosure moratorium is lifted.

Tempe Real Estate Market Report March 2021

The average mortgage rate rose to 3.02% this month according to Freddie Mac.  Even though this is still considered an excellent rate, it understandably weakens the purchasing power for some buyers and reduces the affordability measure for Greater Phoenix overall.  When a family making the median income can afford less than 60% of what’s selling, demand is typically expected to suffer.  However, buyers with median incomes coming from Los Angeles and San Francisco are used to only affording 9-11% of what’s selling in their home towns, so Greater Phoenix prices look amazing by comparison.  In fact, for some the idea of being able to own a home at all is amazing.

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 Tempe area Real Estate Market Report February  2021.

View All Current & Past Phoenix & East Valley Real Estate Market Reports

 

?   Below is a snapshot of Tempe’s Real Estate Market Statistics for February 2021

Gilbert Real Estate Market Report March 2021     

?️     What are the Average Temperatures in Phoenix?

 

Month Low High
Jan 43.4°F 65.0°F
Feb 47.0°F 69.4°F
Mar 51.1°F 74.3°F
Apr 57.5°F 83.0°F
May 66.3°F 91.9°F
Jun 75.2°F 102.0°F
Jul 81.4°F 104.2°F
Aug 80.4°F 102.4°F
Sept 74.5°F 97.4°F
Oct 62.9°F 86.4°F
Nov 50.0°F 73.3°F
Dec 43.5°F 65.0°F

Phoenix’s coldest month is January when the average temperature overnight is 43.4°F. In July, the warmest month, the average day time temperature rises to 104.2°F.

If you would like to see specific homes as they come on the market, click here to get email updates.

?   A look at Tempe’s current Sales Price. Real Estate Market Report for March 2021

Tempe’s Median Sales Price in February was $355,000 up from last months $350,000 and the prior months $344,750. In the past, Inventory levels here are one of the few areas where the number of homes on the market is higher than most other metro Phoenix areas. Prices here have remained fairly stable. Recently they have performed consistent with the rest of the valley  Tempe has always been one of those unique markets since it has ASU in it. So we will see what happens next.

If you are in the process of Buying or Selling a Home, Click on the highlighted link to see a number of interesting articles.

❓    What does this mean if you are a Buyer or a Seller?

Gilbert Real Estate Market Report March 2021

Tempe Real Estate Market Report March 2021

As the chart above shows, Inventory levels for February was .41 months of inventory. Well down fro the prior two months of .60 and .66 respectively.  So, with inventory, being this low, buyers should expect multiple offers. Submit your offer with as few contingencies as possible. Also, make sure you know what the market price is…since you may have to go over that to get the property.

Sellers should be prepared for multiple bids on their homes. We are seeing this low inventory creating a bidding war where buyers end up bidding above the sales price to get the house. Know your actual home’s market value, since you may have to look at offers over list price. Remember, if the appraisal comes in under the purchase price, it could complicate the deal.

If you would like to see specific homes as they come on the market, click here to get email updates.

?️   What is the annual rainfall in Phoenix?

Average Rainfall for Phoenix, Arizona

Month Precipitation
Jan 0.83in.
Feb 0.77in.
Mar 1.07in.
Apr 0.25in.
May 0.16in.
Jun 0.09in.
Jul 0.99in.
Aug 0.94in.
Sept 0.75in.
Oct 0.79in.
Nov 0.73in.
Dec 0.92in.

The driest month in Phoenix is June with 0.09 inches of precipitation, and with 1.07 inches March is the wettest month.  

?️  Homes For Sale in Tempe 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 Tempe homes by price and Type: Below are all the homes available in the city of Tempe by Dollar amount and type:

Under $100,000Between $100,000-$200,000Between $200,000-$300,000

Between $300,000-$400,000Between $400,000-$500,000
Between $500,000-$600,000Between $600,000-$700,000Between $700,000-$800,000Between $800,000-$900,000Between $900,000-$1,000,000
Over $1,000,000In Adult CommunitiesForeclosed HomesShort SalesWith Pools

?  Below you will see the links for the other cities in the East Valley:

 

Chandler

Gilbert

Phoenix

View All Current & Past Phoenix & East Valley Real Estate Market Reports

Contact the Shirley Coomer Group at Keller Williams Realty Sonoran Living

Mountain Park Ranch Real Estate

 

Call or Text: 602-770-0643 for more Real Estate Information

Tempe Real Estate Market Report March 2021

 

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Tempe Real Estate Market Report March 2021
Article Name
Tempe Real Estate Market Report March 2021
Description
Tempe Real Estate Market Report March 2021. Learn about the Tempe real estate market and what it means or buyers and sellers.
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Shirley Coomer Group
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