Hows the Market?? Here is your West Valley Market Report for July 2020. I do hope you are all staying safe, healthy and enjoying out record breaking heat! Wow, did it get warm and speaking of weather, did 2020 short us out of our Monsoon season!??! Oh boy, hopefully its coming and just running a month late!
So Arizona reopened mid-May and boy did it open the flood gate for the real estate market! I can honestly say it felt like 2003-2005 all over again and in 17 years, I never remember a July this busy.
All but two west valley cities had increased sales over July last year, this is incredible considering the inventory levels are a scarcity levels. Let’s take a look at each city. El Mirage had an increase in sales by 27.3% with a -39.23% drop in inventory with only 0.49 months of inventory. Goodyear had an increase in sales by 23.9% with a drop in inventory of -35.56%, 1.28 months of inventory. Tolleson increased 18.5% in sales with a decrease in inventory of -48.86%, thats 0.61% inventory. Surprise had a 17.1% increase in sales with a decrease in inventory of 32.69% sitting at only 1.08 months of inventory. Buckeye up 16.4% sales with -34.46% reduction in inventory at 1.08 months of inventory. Phoenix sales up 9.2%, inventory down -37.61%, thats only 1.29% of inventory. Peoria had increased sales up 5.4%, inventory down -36.16% thats 1.26 months of inventory. Glendale increased sales by 5.0% with a decrease in inventory by -45.25%, thats 0.77 months of inventory. Maricopa county had an increase in sales by 13.0%, inventory down 31.0% and thats only 1.51 months of inventory.
The two cities showing slow sales compared to last year were Laveen and Litchfield Park. Laveen had a decrease in sales by -18.0%, also with a significant drop in inventory -51.87%, with only 0.91 months of inventory. Litchfield Park sales down -6.0% also had a decrease in inventory by -36.81%.
MARKET INSIGHTS: Phoenix area typically has a “peak season” in Spring. Usually begins in February and slows down late June. It doesn’t seem that the pandemic shut down took many people out of the market, simply postponed their real estate needs until it reopenned. So when AZ reopened we truly got flooded with our spring buyers and the usual summer buyers at the same time. Thats coupled with a lot of folks looking to relocate out of their home states due to violent protest and public destruction. We have seen a tremendous increase from Washington, California, Oregon & Minnesota.
We are seeing multiple offers on homes, and some bidding wars, mostly on homes with pools. This is our pool selling season for sure so homes with pools are going for top dollar and as mentioned multiple offers. One of our homes we listed on Saturday morning at 9:00 and had 50 showings by Sunday at 7:00pm and 20 offers, went significantly over the asking price, with buyers making up the difference in cash over the appraisal amount. Needless to say, home prices are going up fast, just look at the chart to see how your city has increased.
Maybe your new to this blog so I wanted to explain so you can see the scarcity of homes for sale versus the buyers currently in the market **ABSORPTION RATE/ “MONTHS OF INVENTORY”: In Months, shows how long the current inventory of properties would last at the current rate of sales. 5-6 months of Inventory would be considered a flat or “Normal Market.” Less than 4 months would be considered a “Seller’s Market” while levels above 6months would be considered a “Buyer’s Market”. Absorption Rate is calculated by dividing the average number of available homes by the number of sales per month.
Buying or Selling, It’s never been a more important time to have an experienced agent on your side. Call us today for a no hassle consultation and let us help you with all your real estate needs.