West Valley Real Estate Market Report by the Jennifer Sanchez Team

How’s the Market? Here is your West Valley Market report for July 2021! Well lets just get right into it, closed sales were down in all West Valley cities, with the exception of two, Laveen up 22.7% and Litchfield Park up 6.5%. Maricopa county overall was down -13.3% over last year. Waddell down -31.0%, Tolleson -30.2%, Avondale -27.1%, Surprise 25.7%, Goodyear -23.4%, Peoria -20.6%, El Mirage -18.6%, Buckeye -16.9%, Phoenix -12.8%, and Glendale -9.1%. Is this a sign of the BUST? Absolutely not. If you remember last year with the COVID shut down, although real estate was an essential and never closed there was a slowing in the spring when the state closed. Then when it opened back up June, July exploded real estate sales where some of the highest and busiest months compared to previous years. I know personally it was my busiest summer in 17 years. So these slow sales to me are just an indication of a normal summer selling season in Phoenix area, and a reflection of the increased sales last year.
More proof that we are still in a strong sellers market is that homes are selling quicker than ever, on average less than 2 weeks on the market. Home prices are continuing to increase at a rapid pace. Median home price in Maricopa county is $375,000, thats a 25% increase over last year! The low inventory levels continue to drive the median home prices in all cities. Laveen is up 35.59% year to date, Buckeye 32.08% El Mirage 30.43%, Tolleson 29.41%, Avondale 28.30%, Waddell 27.82%, Glendale 27.27%, Goodyear 26.98%, Surprise 25.76%, Peoria 24.28%, Phoenix 22.81%, and Litchfield Park 15.04%.
The inception of this monthly blog came to me because the first thing people would ask as soon as they heard I was a real estate agent,  “How’s the Market?” well I don’t get that question anymore, now it “So when is the market going to Bust?” My first response to that question is that this is not the 2004-2006 housing boom, which was born on bad loans, stated income, interest only, basically buyers bought homes they couldn’t afford when the interest rates adjusted and with no equity it was a lost cause and the beginning to the downward spiral.  In this market, buyers are putting large down payments, cash over appraisals and fixed payments, therefore they have equity in their property so the foreclosure threat just isn’t there.
This market is a housing shortage due in part of that housing crisis, as home builders stopped building homes for several years and attributed to our current low inventory levels. However builders cant seem to build quick enough to help level out this market.
Another driving force in the Maricopa county is the increase in jobs. Many companies have relocated to Maricopa County bringing thousands of jobs. Low property taxes and low income taxes, nine months of perfect weather and no natural disasters make Maricopa county a perfect place to  retire and that continues to be the number one reason people move here.  All those things combined with the low inventory supply is whats driving Maricopa county home prices upward and none of these indicators seem to be stopping any time soon.  Of course there are other  factors that can effect a real estate market, over all the economy right? So far right now, market is still going strong.

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