Phoenix Real Estate Update – December 2020
- Active Listings: 7,388 vs. 8,584 – down 13.4%
- Pending/Under Contract: 7,347 vs. 8,002 – down 8.9%
- Sales per Month: 9,269 vs. 9,700 – down 4.44%
- Active Listings $/ft: $273.28/ft vs. $268.20/ft – up 1.89%
- Average Sales $/ft.: $207.48/ft vs. $208.10/ft – down 0.30%
- Monthly Median Sales Price: $330,000 vs. $332,000 – down 0.60%
- Days of Inventory: 44 days vs. 50 days – down 12.0%
- Days on Market: 40 days vs. 49 days – down 10.82%
- Avondale – $152.70/ft vs. $152.05/ft – up 0.43%
- Buckeye – $153.56/ft vs. $156.94/ft – down 2.15%
- Chandler – $206.39/ft vs. $204.96/ft – up 0.70%
- Fountain Hills – $257.48/ft vs. $257.79/ft – down 0.12%
- Gilbert – $196.67/ft vs. $194.25/ft – up 1.25%
- Glendale – $180.59/ft vs. $175.39/ft – up 2.96%
- Goodyear – $169.65/ft vs. $166.75/ft – up 1.73%
- Mesa – $184.62/ft vs. $181.77/ft – down 0.10%
- Paradise Valley – $402.54/ft vs. $434.03/ft – up 10.8%
- Peoria – $183.18/ft vs. $184.49/ft – up 0.22%
- Phoenix – $213.26/ft vs. $206.66/ft – up 1.08%
- Queen Creek – $162.25/ft vs. $160.06/ft – up 1.72%
- Scottsdale – $302.90/ft vs. $306.16/ft – up 5.21%
- Surprise – $157.37/ft vs. $154.08/ft– down 0.12%
- Tempe – $216.24/ft vs. $211.97/ft – up 1.54%
- OVERALL MARKET: $221.81/ft vs. $220.87/ft – up 1.68%
|Dollar Volume for Closed Listings||3Q 2019||3Q 2020||Change|
|$250,000 to $500,000||$4,304M||$5,460M||+27%|
|$500,000 to $1 million||$1,651M||$2,719M||+65%|
|Over $1 million||$759M||$1,635M||+115%|
- Low Inventory: particularly in entry-level price brackets. With more buyers competing for the fewer homes, buyers without strong qualifications are beat out in multiple-offer situations. If this occurs enough times, buyers run out of time if they are currently renting, and are forced to resign leases.
Migration & Relocation
- Location Decision: recent migrants to the Phoenix area are faced with a tough choice in determining where to live. Many choose to rent for 6 months or a year, allowing them to find the part of town in which they want to purchase.
- Morgage Qualification: recent migrants to Phoenix who have transferred jobs will often be required to hold their new positions for an amount of time before qualifying for purchase, forcing them to rent until becoming more established.
- Get your financing in order for your purchase, obtain a prequalification with a lender now, and you will be ready to strike when more homes are listed in January
- Competition will still be fierce for available homes, as pent-up demand from the holiday season is now unconstrained by buying hurdles
- If you are using FHA financing, you can now start shopping higher! The new limit is $368,000!!
- Price your home competitively, doing so will result in a multiple offer situation, giving you the best chance to get the highest price.
- Look for buyers with HIGH down payments who may be able to obtain appraisal waivers for the purchase of your home
- Cash and conventional offers remain strongest!