Phoenix Area Real Estate Market Report by City

November 16th, 2021
How’s the Market? Here is your West Valley Market report for October 2021! Sales were a little slow during the month of September leaving Oct closings lagging behind last year. Could it have been the higher than average temps or are we starting to see a shift. Only time will tell, however it does seem to me to have had a sudden pick up now that the collar weather has arrived. Guess we will see if that trend continues in November or if sales increase. Slow sales are not stopping the increasing home prices, check out the report to see how your city has increased this year.
Only two West Valley cities saw a positive increase in closed transactions over last year. El Mirage had a 33.3% increase in closed sales, with YTD up 12.9% over last year and thats with -18.75% decrease in inventory! Glendale was up 5.4% for the month and  10.9%YTD increase, coupled with -22.45% less inventory than last year. Taking a look at the other cities, although slow sales for the month many still have increased sales over last year while struggling with low inventory. Laveen was down -3.0% although, up 10.05%YTD, with inventory down -13.46% compared to last year.  Litchfield Park was down -26.6% last month, although up 10.05% YTD with a decrease in inventory of -40.49%. Phoenix was down -17.1% in sales last month while still up 9.2%YTD with a drop in inventory of -49.24%. Goodyear was down -26.5% last month but still up 1.8%YTD, with inventory down -50.93%. Avondale dropped -22.3% last mont, but still up 1.3%YTD, with -38.46% less inventory than last year. Surprise was down 10% last month, but holding flat with sales with last year, inventory is down -42.31% compared to last year.
A few cities are a bit sluggish this year. Waddell was down 61.1% in sales last month, down -19.3% YTD and inventory down -42.95. Tolleson was down -21.7% for the month and -6.2%YTD, with a decrease in inventory -23.17%. Buckeye was down -4.8% for the month, down -4.3%, with inventory down -47.14%. Peoria was down 17.1% for the month, hanging on tight with YTD sales only down -0.8%, with a drop in inventory of -49.24%.
 Maricopa county was down -12.4% in sales last month, but still up 7.0% YTD, with a -42.24% less inventory.
Market Insights: Still seeing multiple offers on properties of all price ranges. All types of financing, we are seeing lots of VA and Conventional are getting their offers accepted, more than cash. Prices are still increasing and projections are 15-17% increases over this next year. Maricopa County still has high employment opportunities and lots of people relocating which continues to be the number one factor in increase home prices.

West Valley Real Estate Market Report by the Jennifer Sanchez Team

August 12th, 2021
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.

April 2021 Real Estate Market Report- Phoenix AZ

May 14th, 2021
How’s the Market? Here is your West Valley Market report for April 2021! So at this point you all know we are in a supply shortage and driving prices up, multiple offers and buyers having a really hard time getting a home. Well nothing has changed, except that theres less inventory and sales are exploding! Which is just incredible given the low amount of inventory.
All West Valley cities except for El Mirage -4.5%  and Tolleson -7.5%, had record sales over last year for the month of April. Waddell was up 61.1%, Avondale was up 48.8% over last year, Peoria 47.4% up, Phoenix 41.2% up, Glendale 38.9% up, Goodyear, 37.6% up, Surprise 33.2% up, Laveen 15.9% up and Buckeye up 2.0%. Maricopa County overall was up 42.0% in closed sales for the month.
These sales are incredible when you compare the drop in inventory over April last year. Goodyear -67.18% down, Buckeye -67.04%, Peoria -60.42%, Waddell -57.49%, Avondale -56.57%, Litchfield Park -57.21%, Surprise -53.33%, Tolleson -50.98%, Phoenix -43.24%, Glendale -37.62%, Laveen 36.36%, and El Mirage -17.86%. Maricopa County overall was down -50.86% in inventory supply for the month.
Median home prices are up every where year to date. Laveen is up 30.86%, Buckeye up 27.21%, Waddell up 24.61%, Tolleson up 23.53% Glendale up 23.05% up, Goodyear up 22.58%, El Mirage up 21.71%, Peoria up 21.23%, Avondale 20.80% up, Surprise up 19.86%, Phoenix up 17.90% and Litchfield Park up 16.12%. Maricopa county up 18.96% over last year with a median home price of $355,700.
Market insights: Still seeing multiple offers going well over asking price. Buyers are having to get more creative than ever when competing with 15-20 other buyers, most are waiving appraisals and inspections, accepting the home in as-in conditions with no repair request. Risky, yes, but thats what it takes to get your offer accepted.
Experts continue to predict that we will continue this type of demand market well into 2022. Once again, this is not a housing bubble, but a low supply for the amount of people moving into the greater Phoenix area. Affordability is still very reasonable at 62% for the median house hold income of $80,000.  More good news from the forbearance numbers showing a 22% drop last month in homes in forbearance. Many folks paying the debt in full while others partook of the repayment plan. Only 16.9% of the 2.2 million homeowners don’t seem to have a plan at all. For Maricopa county that is roughly little over 7,000 potential mortgages in default compared to 500,000 homes during the mortgage crisis of 2006-2011. Given the increase in home prices, those folks will likely be able to sell their homes and avoid any type of foreclosure.

Phoenix West Valley Market Report March 2021

April 15th, 2021
How’s the Market? Here is your West Valley Market report for March 2021! Well as I began my 18th year in real estate and look back on the Roller Coaster ride with the ups and downs of the Market, and I will tell you this is the craziest times I have seen! I listed a home and in 3 days we had 187 showings and 79 offers!! The low supply has really caused a feeding frenzy on the homes that come on the market, selling quicker and for more than sellers even imagined. The demand and the low supply of homes is certainly going to drive home prices upwards, for how long, nobody knows really. You don’t know you hit the top until you start descending right? The best indicator of the real estate market is simply Supply vs Demand, which is way we watch the supply closely.
So let’s see how the market is for Maricopa county overall. Median Home price in Maricopa county is now at $350,000 year to date, thats a 17.45% increase over last year. Average days on market is at 20 and sales for March were up 17.3% and were sitting at a 13.1% increase in sales over last year. Thats actually astonishing since we have -47.02% down on inventory compared to last year, with less than 1 month of inventory, 0.91 months. Clearly explains the multiple offers.
Looking at closed sales for the month of March, Laveen was up 52.7% over last year, followed by Glendale at 35.4% up, Avondale increased 31.6%,  Waddell up 29.2%, Phoenix 23.2% up, El Mirage  increased 16.7%, Goodyear up 7.4%, Peoria up 4.9%, Surprise up 1.5% and Litchfield Park up 1.5%. Two cities came up short on sales last month Buckeye -17.0% and Tolleson -12.57%. Again this is all staggering numbers considering the low inventory, click on the image below and see just how short of supplies we are dealing with.
Buyers, don’t be discouraged. I am sure all this sounds like its not a good time to buy. It is not impossible to get a home, we are still getting our buyers their dream home, it just takes some strategy and negotiation skills. I can give you some tips and probably the most important one, make sure you have an experienced, active, FULL-TIME Realtor. Someone that can get you into the homes as soon as possible and help write a strong offer. There are many many intricacies and details in our contract and you need an agent that understands the offer to its fullest extend in order to strategically place your offer in a strong position. This is not the norm in the industry, I can tell you that out of the nearly 100 contracts I saw the last two weeks on our listings, 10-15 were solid well written offers. Lastly, Do NOT send a personal letter to the seller. As the National Assoc. of Realtors recently advised agents, that these so called “love letters” border on Fair Housing violations and therefore the reason my sellers never see them. It’s also a dead give away that the offer is not the strongest and you’re trying to play on the emotions of the seller. Sellers are looking for the strongest buyer and sometimes thats not always the most money.
So have you been thinking about selling and curious as to what your home would bring in todays hot hot hot market? We can provide you with a No hassle, No contact, Market Analysis and let you know what your home would sell for and what you would walk away with in your pocket. Call, Text or Email me  and I will let you know what information we need in order to provide you with your homes current value. Don’t trust online automated systems, they don’t have the ability to properly compare homes upgrades, floor plans and pools or if someone sold too low, it does not have the ability to remove that in your comparison.  Contact us for more information.

Phoenix Area Real Estate Market Report for February 2021

March 17th, 2021
How’s the Market? Heres your West Valley real estate market report for February 2021. It’s no secret the Phoenix real estate market is experiencing a historical phenomenon in many areas, but how long can this last is really the bigger question on everyones mind. Many of you have followed my market report for several years, along with tracking the market conditions on the MLS, I also follow several other professional statisticians in the Valley to hear their take on what the numbers are saying. So here’s a conglomeration of what is being said by experts interpreting the market numbers. All fingers still point to a major supply issue, low supply and high demand. Total inventory has a month-over-month decrease of -7.7% and the year-over-year reflects a -43.8% decrease. In order for our current market to go back to a “normal” market, we would need 7 times the current inventory supply. That would be a phenomenon in and of itself if all of a sudden that many homes all of a sudden listed for sale. Instead what is happening is as home come on, the sell right away, mostly with multiple offers and those buyers that didn’t get the home wait for the next home. Which means the next new listings sell quickly and we continue this low inventory supply. So with that said, we don’t see the “sellers market” disappearing anytime soon.
The other phenomenon we are seeing is home prices rapidly increasing. Median home price in Maricopa county is currently $349,250, February 2020 was $295,000 and 2019 was $265,000. Check out the link below for a breakdown on median home prices for each West Valley city. The $300,000-$399,999 is the top selling price range in Maricopa county and all West Valley cities except one. Maricopa county sold 1713 homes in this price range last month, followed by Phoenix with 404,  Surprise with 168 sales, then Glendale with 132 sales, Peoria with 99 closed, Goodyear with 84 sales, Buckeye with 73, Avondale with 57, Tolleson with 31, Laveen with 30, and Litchfield Park with 27. El Mirage sold the most homes in $250,000-$299,999 with 26 homes sales.
Closed transaction continued strong in many West Valley cities. Tolleson had a 14.6% increase over last year, Litchfield Park with 13.6% increase, Phoenix up 10.0%, Avondale up 5.4% &, Peoria +4.1%, Goodyear +2.4%, and El Mirage was flat for the month. Some cities came up short last month in closed sales compared to February 2020, Buckeye -16.2%, Laveen -11.9%, Surprise -10.3%, and Glendale down -7.1%.
Market insights: The market for locals is very much a stale mate, many Phoenix area homeowners would sell if they could find a home to move to, low inventory supply makes this very difficult for them to make the move. Local first time homebuyers are quickly getting priced out of the market, sad reality for many. Many buyers are still coming from CA, IL, and Washington state, they are offering over the asking price and waiving appraisal contingencies. This will continue to drive prices upward. Rental market has seen a 21% increase over last year, making it more affordable to purchase than rent, however there just aren’t enough homes for sale so many tenants continue to lease.

Phoenix West Valley Real Estate Market Report January 2021

February 19th, 2021
Hows the Market?? Here is your West Valley Market Report for January 2021. Hope your all staying healthy and having a great start to the New Year!! Once again Phoenix Market saw record home sales this month. Home demand continues strong and inventory continues to diminish with very few available homes for sale. We currently have more homes in escrow than for sale, once again showing that we are not in a housing bubble, we have a supply issue.  Driving home values upward, take a look at the chart to see the huge jump in median home prices by city.
So let’s take a look at the breakdown for sales last month. Nearly all West Valley cities had an increase in sales over last year, Goodyear had a 22.4%, Phoenix +17.2%, Litchfield Park +17.0%, Tolleson +11.9%, Laveen +10.6%, Buckeye +7.1%, Glendale +7.3%, Surprise +3.8%, El Mirage + 2.5%, Peoria +1.4%, only Avondale was down -14.6%. Over all Maricopa County had an increase of +13.7%.
What makes these sales increases more of a phenomenon is how low the market inventory is. I know I have been saying this a lot over the past several years, low inventory, low inventory…. but we are at an all time low! Take a look at the chart, only one West Valley property is over 1 month of inventory, Litchfield Park at 1.09 months and all the rest are below on month. Maricopa County is at 1 month of inventory. This is absolutely insane!!
As far as an outlook on inventory levels increasing, doesn’t look like we will be increasing anytime soon. Last month all West Valley cities were down over last year, as far as new listings being. Laveen -48.8%, Buckeye -37.0%, Surprise -37.0%, El Mirage -36.7%, Tolleson -27.9%,
Peoria -24.6%, Avondale -24.1%, Glendale -19.5%, Goodyear -19.8%, Phoenix -15.6%, and Litchfield Park -11.1%. Maricopa County was down -7.9% overall.
With strong sales and decreases in New listings being taken, it is very likely this strong sellers market will continue to drive home values for several months at least.

West Valley Market Report by City December 2020

January 8th, 2021
Hows the Market?? Here is your West Valley Market Report for December 2020. Happy New Year! I wish you all a healthy and prosperous 2021! Well let’s look at the real estate market and see how each city performed this year with lockdowns, elections and all the craziness we endured this past year.
We can definitely say the real estate market was strong all year with Maricopa County having a 13.72% increase in median home prices, for the year and sales were up 6.0%. Thats pretty remarkable considering that the inventory was down -32.16 from last year. Currently sitting with only 1.54 months of inventory.
So let’s look at each West Valley City.
Avondale had a 12.24% increase in median home prices, inventory was down 31.01% for the year and sales were down -9.0%. Currently sitting at 0.69 months of inventory.
Buckeye had a 15.13% increase in median home prices, inventory was down -39.53% compared to previous year and sales were down -3.2%. Currently sitting at 1.3 months of inventory.
El Mirage had an 11.63% increase in median home prices, inventory was down 30.51% for the year and sales were down -5.7%. Currently sitting at 0.82 months of inventory.
Glendale had a 8.53% increase in median home prices, inventory was down 31.01% for the year and sales were down -10.6%. Currently sitting at 1.47 months of inventory.
Goodyear had a 7.55% increase in median home prices, inventory was down 41.90% for the year and sales were down -4.3%. Currently sitting at 0.69 months of inventory.
Laveen had a 14.12% increase in median home prices, inventory was down -34.62% for the year and sales were down -6.3%. Currently sitting at 1.02 months of inventory.
Litchfield Park had an 18.46% increase in median home prices, inventory was down -42.55% for the year and sales were down -3.7%. Currently sitting at2.67 months of inventory.
Peoria had a 11.70% increase in median home prices, inventory was down -37.5% for the year and sales were down -37.5%. Currently sitting at 1.25 months of inventory.
Phoenix had a 14.99% increase in median home prices, inventory was down -37.5% for the year and sales were down -5.9%. Currently sitting at 1.37 months of inventory.
Surprise had a 12.08% increase in median home prices, inventory was down -34.76% for the year and sales were up 2.5%. Currently sitting at 1.24 months of inventory.
Tolleson had a 11.46% increase in median home prices, inventory was down -48.03% for the year and sales were up down -6.2%. Currently sitting at 0.79 months of inventory.
MARKET INSIGHTS: Homes are selling faster than ever with multiple offers, in almost all price ranges. Buyers are having to get more and more creative against the competition. Interest rates are historically low, seeing below 3% in most cases, 15 year fixed 2.25%-2.75%.  Rental market has surge so much that its cheaper to buy than rent, thats putting more buyers in the market place, with the low levels of supply, its anticipated to continue driving home values upward at least through summer of next year.

Real Estate Market Report for the Phoenix Area November 2020

December 8th, 2020

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.

Click to Enlarge

Phoenix West Valley Real Estate Market Report by City September 2020

October 8th, 2020
Hows the Market?? Here is your West Valley Market Report for September 2020. Hope you are all making the best of this crazy wild ride we are on and staying healthy. I like to look on the positive side of everything and I can say that our family has really enjoyed card games and board games more than ever and my hubby is really becoming a great cook! I hope you all have found some positive things to come out of all this too!
So let’s get to it, how is the market doing, well I can tell you that the pandemic hasn’t slowed homes sales at all. Maricopa county overall had a 20.3% increase in sales over last year. All West Valley cites except for two also had increased sales. Laveen had incredible sales with 41.5% increase over last year, Goodyear increased 22.4%, Peoria 18.5%, Phoenix 11.6%, Buckeye 10.8%, Avondale 4.8% and Glendale 4.4%. Litchfield Park was down by -6.7% and El Mirage was down -20% over last year.
Whats most incredible about the strong home sales is that the inventory is down on average 30% from last year. Homes are selling very quickly, average days on market 29 days and some cities its selling faster at 17-21 days. Many homes are seeing multiple offers, we listed a home on Saturday to Sunday had 48 showings, with 20 offers by Monday evening, selling $20,000 over asking price. Side note this home had a pool and that is a huge selling feature for homes in AZ. We have seen homes selling well over asking price as the buyers “fleeing” CA and WA (thats their word, not mine) and they are fleeing with some cash in hand and willing to pay cash over appraisal because our homes are still much more affordable than many other areas in the country.
Median home price in Maricopa County is up to $327,500 thats a 12.36% increase over last year. All west valley cites experienced increased home values. Click on the chart below to see how your city is doing.
Market Insights: I wanted to discuss something that I have heard over and over, perhaps questions you have even pondered…. are we in another bubble and is it going to pop like the mortgage crisis?? Although no one has a crystal ball and crazy things can happen at anytime as we have all seen this year, I would like to share with you my opinion on this subject.
First and foremost the biggest driver for the increasing home values is the low supply of homes for sale. Maricopa county has only 1.64 months of inventory, all west valley cites are 1 month or less of inventory.  As more and more industry and jobs are coming here, along with those folks “fleeing” their home states to relocate here, there are far more buyers than homes for sale and that will continue to keep the inventory low and press prices upward.
Another thing I hear a lot is that the pandemic job losses, will certainly bring on the foreclosures and drive prices back down. I really don’t think we will see the foreclosures like before and here are a couple of reasons why. First and foremost, most homeowners have lots of equity with the last few years having 8-10% increases, they should be able to sell with out facing foreclosure.
Secondly, it is far harder to qualify for a home loan, much scrutiny goes into debt to income, loan to value and many buyers have a down payments so they aren’t getting into homes they cant afford. Nor do with have adjustable rate loans, with fixed interest rates, no more increasing monthly payments, which adjustable interest rates were a big reason so many homeowners lost their homes.
Since we are talking about foreclosures, I would like to add that the banks got smarter towards the end of the mortgage crises. In the beginning the thought was, “lets just get through these foreclosures as quickly as we can” and so they FLOODED the market with inventory, which drove the prices down. As an example in September 2008 we shot up to 12.9 months of inventory, there were not enough buyers to absorb those sales for almost 1 year. At our peak, the inventory was at 18months, this is what dropped home values. As listing agents for Wells Fargo and a few other banks, I still remember when they started to hold back foreclosing, slowed listing their inventory in order to lower the inventory levels, and help prices make their way back up. So I certainly don’t think they would flood the market again, they learned their lesson. Side not the Median home price in Sept 2008 in Maricopa County was $170,100.
Lastly, the appraisal industry is now regulated unlike during the mortgage boom of 2004-2007 where anything appraised for any amount. Home values higher than cost of living and inflation is a recipe for disaster and thats what happened. Very specific guidelines and much scrutiny with appraisals now, appraiser and lender underwriters  review the final appraisals, this helps to suppress home values to keep with inflation. In the current market we are seeing multiple offers and homes selling over list price, but the buyers are having to pay that cash over appraisal, which means they are not financing 110% of the mortgage. So they still have that money in the equity of the home and would be able to sell and recover that money.
Over all the AZ economic growth is still strong with many industries still bringing jobs which leads to more buyers. Our property taxes are still considered low by national standards. Cost of living is very affordable, along with our beautiful winters, we should continue to see growth in AZ for a while. At least thats my hopeful opinion as I look at the numbers and the direction AZ is moving in.

Phoenix West Valley Real Estate Market Report July 2020

August 7th, 2020
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.