Hows the Market?? Here is your West Valley Market Report for November 2020. Well as this year comes to an end we can certainly say the real estate market has been just as crazy as 2020 was for everyone. Homes are selling faster than ever, multiple offers and many times over the asking price. Maricopa county continues to be a “High Demand, Low Supply Market.” The low supply of homes for sale continue driving prices upward very quickly, currently the Median home price in Maricopa county is $314,000 thats a 14.18% increase over last year. Along with only 1.42 months of inventory, we will definitely see prices continue upward. Current projections are that prices will continue upwards at least the first half of next year. Experts say that we will only see a shift in the market as home affordability exceeds the cost of living in Maricopa, that will remove many buyers out of the market and lower demand.
Along with this strong sales, we did see some cities increase the number of new listings on the market. El Mirage listed 53.8% more homes in November 2020 as compared to 2019, thats 60 new listings versus 39. Laveen up 22.2%, Litchfield Park 12.23%, Phoenix 10.5%, Glendale up 6.2%, Avondale 5.2% up, Tolleson up 4.4%, Peoria almost flat at .9% and Surprise was flat with last year. So this is all great with the low inventory levels, however it doesn’t indicate a shift in the market, the reason is simple, take a look at the record sales we had last month. Even with this increase in new listings taken the sales off set them.
All West Valley cities have seen double digit increases in median home prices this year. November brought some record sales and big increases in median home prices. Buckeye had a 22.14% increase in median home prices, with a 21.0% increase in closed sales. Laveen’s median home prices up 20.86%, with an 31.0% increase in closed sales. Phoenix up 18.08% with closed sales up 20.9% over last year. Surprise increased 16.85% with sales up 9.0%. Goodyear increased 16.0% and closed sales 19.6% increase. Peoria median home prices increased 15.91% and closes sales 34.6% up. Litchfield Park
increased by 15.88% and closed sales up by 16.4% Glendale increased 15.14% and closed sales up by 6.4%. Avondale up 13.55% with closed sales up 37.3%. El Mirage 12.75% up and closed sales 66.7% increase. Tolleson increase 10.70% along with closed sales up 35.7%.
Wrapping all that data together goes back to our high demand and low inventory market, definitely NOT a “bubble” as rents are increasing quicker than home values. Maricopa county has more homes in escrow than listed on the market. Ending November with only 1.42 months of inventory. Tolleson is only at .07 months. Avondale at only 0.86 months. This are scarcity levels. Take a look a the chart below to see how many months of inventory is in your city.
Market insights: 2-3% mortgage interest rates are a big driving force in buyers in the market place. Buyers can now qualify for much more home prices than in previous years. This has increased the amount of first time home buyers greatly. Although all price ranges are selling quickly, not just the entry level homes. Even through a pandemic, the market is extremely strong.