1st Southwest Realty, LLC
1st Southwest Realty, LLC
Pat Hune, 1st Southwest Realty, LLCPhone: (480) 703-1976
Email: [email protected]

July 2020 Phoenix Real Estate Update

by Pat Hune 08/02/2020

July 2020 Phoenix Real Estate Update. July 2020 Phoenix Real Estate Update. Below is a summary of my real estate newsletter. If you would like to receive my newsletter please send me an email at [email protected]. 1) Greater Phoenix Real Estate Market at a Glance The seller's market frenzy continues in all price ranges. New listings overall compared to last year were down 7.8% while contracts in escrow soared 24% higher. This is causing an extreme amount of buyer competition in all price ranges but especially for homes priced under $300K. Currently there is only 1.5 months of inventory. Prices are going up as Phoenix reported the highest year-over-year gains in home price growth, well ahead of other key U.S. cities, according to Case-Schiller. 2) STAT Newsletter - Greater Phoenix Area Market Change If just one more average priced home had sold in the first six months, 2020 would have reported the highest dollar sales volume in its history. How is that even possible in the middle of a pandemic? When we report July numbers I promise you 2020 will rank number 1. 3) Eviction Moratorium Extended to October 31 and Help for Arizona Renters 4) What Are They Building Over There? 5) Tales From The Trenches - Pot-pourri of Real Estate Life Resurgence of Vacation Rentals How to Get Rid of German Cockroaches How to Buy in a Seller's Market How Listing You House as "Coming Soon" Could Cost You Thousands 1) Greater Phoenix Real Estate Market at a Glance The Cromford Report, Tina Tamboer, (c) Cromford Associates LLC & Tamboer Consulting LLC For Buyers: Greater Phoenix has a population of approximately 4.8 million people and 1.4 million single family homes, condos and townhomes in total inventory. As of July 8th, only 8,579 of these units were available for sale through the Arizona Regional MLS. If that number doesn’t cause you to gasp, then this might: only 1,023 are single family homes under $300,000 and that number is diminishing every day. Not only is demand accelerating, and this is true across both single and multifamily product types, but mortgage rates have continued to remain at, or near, all-time lows. Currently there is only 1.5 months of inventory. Prices are going up as Phoenix reported the highest year-over-year gains in home price growth, well ahead of other key U.S. cities, according to Case-Schiller. The last month has seen a surge of buyer activity, but it was not met with an equivalent surge of new listings. New listings overall compared to last year were down 7.8% while contracts in escrow soared 24% higher. For buyers under $300K however, new listings were down 22% in June compared to last year and are down 38% so far in July. This is causing an extreme amount of buyer competition in this price range. When buyers expand to over $300K, then new home construction starts supplementing inventory and providing some much-needed alternatives. The top 3 cities for single family home permits are Phoenix, Mesa and Buckeye with notable spikes in building permits issued in Surprise, Maricopa and Queen Creek. Most new homes are selling between $300K-$500K, but buyers looking for a brand-new single-family home under $300K still have some options. Their best bet is in Pinal County or Buckeye with average sizes between 1,800-2,000 square feet for their budget. Conversely, new listings over $500K saw a spike last month, up 20% over last year. There were 1,596 new listings on the market and 2,046 contracts were accepted in this price range in June. For Sellers: Brace yourselves. Half of the sellers who accepted contracts under $400K in the first week of July were on the market for just 8 days or less with their agent prior to contract acceptance. Sellers who took contracts between $400K-$600K had a median of 14 days on the market with their agent and those who landed contracts between $600K-$1M had a median of 41 days. It’s a good time to be a seller. If you planned to sell your home this year, now is the time to list it! While 28% of all sales in July so far have closed over asking price, that percentage peaks at 41% for those between $200K-$300K. Top cities for closings over asking price are Tolleson, Avondale, Glendale, Gilbert and Youngtown. Gilbert is the only city in that list with a median sale price over $300K. Seller-assisted closing costs remain popular and were involved in 23% of all sales in the first week of July. That percentage increases to 33% on transactions closed between $150K-$300K. Top areas where 50%-60% of sales involved seller accepted closing cost assistance were Youngtown, West Phoenix, Aguila, Glendale, and Tolleson. This supports the theory that sellers receiving offers over asking price in the West Valley and other affordable areas are still open to accepting closing cost assistance if a contract meets their most important needs.

About the Author
Author

Pat Hune

Designated Broker

Pat specializes in new, resale, bank owned and short sale residential and multifamily real estate in the Phoenix area.  A licensed realtor since 2001 Pat started her own brokerage in 2007.  She has a bachelor degree in Business from University of Phoenix, Broker's License, ABR and MSSC in addition to extensive real estate training.  Her professional affiliations include the Southeast Valley Association of Realtors, Arizona Association of Realtors and National Association of Realtors. She has traveled extensively including  Australia, China, Ireland, Israel, the Philippines, Malaysia, Canada, Costa Rica, Puerto Rico and Mexico. Prior to entering real estate Pat spent 20+ years in the electronics industry including 17 years at Intel.  Pat is originally from Ohio and moved to Phoenix in 1979. As a 30+ year Phoenix area resident Pat has extensive knowledge of many of the communities in the greater Phoenix area.  In her spare time Pat enjoys hiking, cooking, reading and herding cats.