How’s the Market? Heres your West Valley real estate market report for February 2021. It’s no secret the Phoenix real estate market is experiencing a historical phenomenon in many areas, but how long can this last is really the bigger question on everyones mind. Many of you have followed my market report for several years, along with tracking the market conditions on the MLS, I also follow several other professional statisticians in the Valley to hear their take on what the numbers are saying. So here’s a conglomeration of what is being said by experts interpreting the market numbers. All fingers still point to a major supply issue, low supply and high demand. Total inventory has a month-over-month decrease of -7.7% and the year-over-year reflects a -43.8% decrease. In order for our current market to go back to a “normal” market, we would need 7 times the current inventory supply. That would be a phenomenon in and of itself if all of a sudden that many homes all of a sudden listed for sale. Instead what is happening is as home come on, the sell right away, mostly with multiple offers and those buyers that didn’t get the home wait for the next home. Which means the next new listings sell quickly and we continue this low inventory supply. So with that said, we don’t see the “sellers market” disappearing anytime soon.
The other phenomenon we are seeing is home prices rapidly increasing. Median home price in Maricopa county is currently $349,250, February 2020 was $295,000 and 2019 was $265,000. Check out the link below for a breakdown on median home prices for each West Valley city. The $300,000-$399,999 is the top selling price range in Maricopa county and all West Valley cities except one. Maricopa county sold 1713 homes in this price range last month, followed by Phoenix with 404, Surprise with 168 sales, then Glendale with 132 sales, Peoria with 99 closed, Goodyear with 84 sales, Buckeye with 73, Avondale with 57, Tolleson with 31, Laveen with 30, and Litchfield Park with 27. El Mirage sold the most homes in $250,000-$299,999 with 26 homes sales.
Closed transaction continued strong in many West Valley cities. Tolleson had a 14.6% increase over last year, Litchfield Park with 13.6% increase, Phoenix up 10.0%, Avondale up 5.4% &, Peoria +4.1%, Goodyear +2.4%, and El Mirage was flat for the month. Some cities came up short last month in closed sales compared to February 2020, Buckeye -16.2%, Laveen -11.9%, Surprise -10.3%, and Glendale down -7.1%.
Market insights: The market for locals is very much a stale mate, many Phoenix area homeowners would sell if they could find a home to move to, low inventory supply makes this very difficult for them to make the move. Local first time homebuyers are quickly getting priced out of the market, sad reality for many. Many buyers are still coming from CA, IL, and Washington state, they are offering over the asking price and waiving appraisal contingencies. This will continue to drive prices upward. Rental market has seen a 21% increase over last year, making it more affordable to purchase than rent, however there just aren’t enough homes for sale so many tenants continue to lease.