Hows the Market? Here is your West Valley Market Report for January 2020. Well good news or bad news, which one you want first? Well I like to stay positive so lets start with the good news!! If you are a homeowner, you should be very happy as your equity is rising steadily each month! Median home prices have continued increase in all West Valley cities, some seeing double digit increases for the first month on 2020. Litchfield Park up 14.19%, Laveen 13.28%, Tolleson 11.40% and Buckeye had an 11.11% increase, and Maricopa County reports 10.27% increase over last year.
How about some more good news? Homes sales were also up compared to January 2019. Strong sales reported in all but one West Valley city, Avondale had a whopping 31.5% increase over last year, Glendale up 28.8%, Peoria 23.8%, Litchfield Park 17.5%, Glendale 16.6%, Surprise and Phoenix both at 15.9% increase, Tolleson 7.7%, Laveen 4.4% El Mirage was flat wit last year. Buckeye fell short on sales at -3.2% down compared to last year.
So whats the bad news? Scarcity of homes for sale! Inventory levels have dropped to some of the lowest levels I have seen in years. Although buying a home is usually emotional purchase, homes are still a commodity and just like everything else,its driven on supply and demand. So as we commonly refer to the real estate market as a “Sellers Market” or “Buyers Market” this is actually determined on the amount of homes for sale versus buyers in the market, or absorption rate of the inventory available. So “Absorption Rate” in months of inventory would show how long the current inventory of properties wold last at the current rate of sales. Normal Market 5-6 months, Less than 4 months is a Sellers Market and above 6 months is a buyers market.
So lets look at the current inventory levels in the West Valley. Tolleson is less than one month at only 0.9 months, Laveen at 0.99 months, Avondale at1.02 months, Glendale at 1.04 months, Peoria at 1.37 months, Phoenix at 1.47 months, El Mirage at 1.56 months, Surprise 1,58 months, Buckeye at 2.04 months and Litchfield Park 2.18 months. Maricopa County is currently at only 1.76 months of inventory. Thats critically low numbers. We need more homes to sell, everyone has heard that Spring is a good time to sell, well keep in mind, well compared to most of the country, February and March are Springtime in Arizona!! Now is the season to sell! If you are thinking about making a move call us for a Market Analysis today!