Hows the Market? Well first let me just ask how are you all doing?!?! Crazy times, right?!? I certainly hope that you are all healthy and practicing staying home and practicing social distancing and safe procedures to help stop the spread of COVID19. I am just hoping and praying that the virus doesn’t like our heat and leaves us all alone!! I have never heard some many praying for the heat!! LOL Fingers crossed.
Also before we get into the March market report, I want to remind everyone that these numbers would be more reflective of Februarys market conditions, which was prior to our Stay in Place order. Gratefully in our state, real estate is an essential, as people still need to buy and sell and are relocating to our beautiful city. Thus far we are not seeing the market take to much of a hit. We are still having showings, homes are still selling quickly and plenty of buyers out looking at homes. In fact, I listed a home last Monday we had two showings on Tuesday and two offers, sold for full price on the first day. So only time will tell, we are in very uncertain times and with so many loosing their jobs, it will remove a lot of buyers from the market, estimated 25% of buyers will need to put home shopping on hold for the time being.
So with all that, here is your West Valley Market Report for March 2020. Inventory has dropped to some of the lowest levels I have ever seen, at least in the 16 years I have been in real estate. Maricopa county is at a mere 1.78 months, that means if no one else list another home, we have enough buyers to buy up every listing in less than 2 months!! Thats insane. To further drive that point home, in March 2004, a time when you couldn’t even get a sign in the yard, the home had multiple offers, the inventory level was 4.29, we have nearly a third less WOW!! All West Valley cities had a huge decrease in inventory over March 2019, Laveen -61.34%, Glendale -49.47%, Avondale -45.6%, Phoenix -44%, Peoria -42.62%, El Mirage -40.29%, Tolleson – 38.81%, Surprise -37.23, Goodyear -36.58%, and Litchfield Park -27.80%.
Now despite the slim pickings of homes for sale, closed sales were up in Maricopa County by 11.3% over last year. Buckeye had a 23.6% increase, followed by Litchfield Park had a 16.9%, Goodyear 15.1%, Surprise 14.7%, Peoria 12.5%, Tolleson 8.9%, Phoenix 7.4%, Laveen 3.7%, Glendale 1.65%, Avondale nearly flat at .04% and El Mirage fell short down -5.1% down over last year.
Home prices are still increasing, Maricopa country is up 12.26% over last year, which is being driven by the low supply. All West Valley cities have increased median home values over last year, check out the chart to see how you city is doing with home values.
Market insights: Interest rates are still historically low, home affordability in AZ is very low, we have record numbers of folks moving to AZ for work or to retire, our market is still very stable at this point. Another positive note is the government stimulus package, and government insured home loans granting forbearance of payments and have said the are going to be working with homeowners, this is something that didn’t happen so much during the mortgage crisis, as they were some of the most difficult short sales to
process and most went to foreclosure. Perhaps they learned their lesson, no body wants to see the foreclosure nightmare come back.
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