Hope this Market Report finds you all well and staying healthy!! Sending out prayers and good thoughts to all of you and your loved ones as we all ride the 2020 roller coaster!! So lets chat about Hows the Market?? Well heres your West Valley Market Report for May 2020. Keep in mind this sales would be reflective of contracts written for April which AZ was on the mandatory Stay at home orders.
If you have followed this blog over the years, you know I like to find the good news and start there! So Good News, home values continue to rise, we are currently experiencing a boom in the market for June and should definitely continue to drive prices upward. All West Valley cities had an increase in the median home prices over same month last year. Maricopa County overall was up 5.73% last month. Litchfield Park up 16.31%, Avondale up 12.04%, Glendale up 10%, Laveen up 9.78%, Phoenix up 8.35%, Surprise up 8.34%, El Mirage up 8.06%, Tolleson up 5.13%, Buckeye 4.96%, Peoria up 3.23%, and Goodyear had a slight increase at 0.66%.
Inventory levels are at scarcity low levels, we saw an increase in Temporarily off the Market (TOM) when the stay at home orders came on, some sellers took their homes off the market. So these homes will come back on the market eventually, which is more promising than seeing homes cancel. Maricopa county is sitting at only 1.96 months of inventory, that means theres enough buyers to buy all the homes in less than two months, providing no new listings come on! Thats scarcity levels, thats why we are seeing multiple offers on each home and homes selling quicker than ever. Take a look at the market roper imagine and see just how low each cities inventory levels are currently at.
May closings were down significantly, again with the then newly imposed stay at home orders and low inventory levels, this was to be expected. Maricopa County was down -33.1%. As well as all west valley cities reporting decreases in sales over same year last month. Laveen down -39.2%, Litchfield Park down -38.6%, Surprise -37.8%, Glendale -36.3%, Avondale -35.4%, Phoenix -34.1%, Buckeye -32.2%, Peoria -30.0%, Tolleson -25.4%, El Mirage -20.8%, and Goodyear was only down -7.2%.
Don’t let these slow sales in May fool you, we are currently experiencing an explosion in the market! This pandemic didn’t seem to drive buyers out of the market, just a temporary hold like we saw with some listings. When the stay at home ordered lifted, everyone came out of the woods excited and ready to purchase their new home! This is not only our teams experience, we have networked with realtors all over the valley and the word most common descriptions are insane & crazy.
Market insights: Low inventory levels on resale market have driven the new build market up. We are seeing lots of good deals on inventory homes out there. Its a great time to think about a brand new home!
As Arizona continues to be a hot spot (pun intended) for economic growth we are seeing many people moving from all over for a variety of reasons. Retirees and mid west and northern states looking for a warmer winter destination. Californians are still flocking to AZ, as well as Texas, Washington and Oregon.
All in All the Real Estate Market is continuing on a strong course. Lets all hope for a healthier, more prosperous and socially back together second half of 2020! Cheers!