06/05/2020
The Wild West of Real Estate - Arizona - Figures and Opinion
The Real Estate market is changing in Arizona, and you need to be looking or selling NOW!
Over the past 60 days the market in Arizona has gone from a seller’s market, to a neutral or close to a buyer’s market and is now working its way back to a possible seller’s market. The one constant during this time is lack of inventory. The figures below show in March thru to June, active listings and listed single family homes listed but under contract(pending). The Phoenix metro area moved from more homes under contract than homes available for sale in March, to the reverse in April and looks to be moving back to the same market we had in March. All this time we still did not have the supply of homes needed for 6th largest city in the US.
Keep in mind that Pending contracts usually take an average of 30 to 45 days to close. That translates into a 30 to 45-day window before most media report, allowing both buyers and seller a little time to react.
Buyers have this time to look for a home with a good possibility of negotiating on their new home or rental. There may be some homes that show up on the market that normally would not be available. Why, some investors with Airbnb homes are running a little thin on rents because of the Corona Virus. If these come up for sale, do not expect them to last long or go to foreclosure. If the present pending contracts close, which 90% or more should, the negotiating power will soon start to diminish. Grab a great interest rate and look now.
Sellers / Many sellers or Realtors wait out the summer before listing homes for sale. The usual reasons are – heat and many buyers are on vacation. The figures show that this summer should be different. Many Arizona buyers are staying home and many out of state residents are moving to Arizona. Arizona, one of the fastest growing and safest states to reside during these crazy times. Arizona’s inventory is low and very low interest rates make great reasons to buy. When June’s sold reports come out in July, I expect them to reflect the major move in our market. As you can see from my figures below homes are already evaporating and prices will jump – again! When you get this opinion, list your home and the timing could put you on the edge of a huge seller’s market.
My notes below show Corona events as well as Single family Homes listed for sell in the Multiple listing system that includes all of Maricopa county and more.
Active (Listed homes available for sale)
Pending (homes listed for sale but already have contracts and waiting to close)
Active Pending
3/2/2020 8775 10119
($300,000) 2080 4294
($700,000) 4084 4788
3/13/2020 8765 10488 Corona Virus
St. Pats day Phx Shuts down Rest.
3/19/2020 9162 10288 Corona Virus- Stocks dump
5/25/2020 10001 10560 Restaurants opening
($300,000) 2478 4604
($700,000) 4951 5156
6/1/2020 9234 10913
Weekend after Floyd Riots and still Corona but businesses opening
6/4/2020 8815 11226
