Message to all Arizona property owners... there are no signs of a market crash in the foreseeable future despite what the media is telling you. But what about COVID and unemployment, you ask? Let's look at this closer. And let's start where we saw change first. Wall Street.
It's not where we want it to be yet but it sure is on it's way. So much so that the Wall Street-backed Technology Real Estate giants (IBuyers) are back in the market.
IBuyers in a nut shell. Get to a homeowner that may be thinking about selling their home BEFORE they have much time to think about it and oversell the inconvenience of using traditional methods to sell. Sure...they offer 'market value' and then charge the Seller service and repair fees even more then it would cost for commissions. Most Seller's literally throw away in excess of 20K per transaction. These acquisitions are not reflected on MLS (skewing numbers) but are available on public record for the purchase price (not really what they are paying for the property in the end. Ok, enough of my rant.
January-March 2020 was INSANE. Take the nation's smallest inventory, add in the #1 state for inbound migration and then sprinkle in Wall Street investors with a dash of Airbnb and VRBO, and that is where we were at ... until COVID.
Fast forward to today and we are pretty much right where we left off as far as volume.
Here's another view of the market when compared to last year, record highs and lows.
Typically Jan-Apr is Arizona's buyer's season, June starts to slow down as the temperatures start to heat up and by July, there usually isn't a whole lot of Buyer's out there. This next chart not only shows you the normal seasonal trends but again, how out of whack the market was and still is despite the disruptions. Not a lot of negotiation leverage for Buyers in the higher demand areas and price ranges.
But what about values? Q2 won't end for a couple more weeks (June 30th) but if there is a dip, it will be minimal. As some Seller's experienced real estate PTSD, they panicked-sold in April in fear that the market would be plunging. As those April contracts finish closing up this month, we may see a slight dip.
Aside from all the Wall Street and COVID disruption, the big market shocker is that although prices have continued to increase, the cost to own a home today has gone down.
Huh? Crazy, right?! In November 2018, if you bought an average home 1,500SF-2,000SF in the Greater Phoenix area for $303,000, your monthly payment would be $1,443/month. If you bought that same 'average priced 1,500SF-2,000SF home in Greater Phoenix' today, it would be $333,000 but your monthly payment would be $1,301/month.
What do you think will happen to these values?
What do you think will happen with the interest rates?
I am here to help you answer your questions about the Greater Phoenix residential real estate market. For example:
How does today's market compare with the same time last year?
Which price range is selling fastest over the last month?
Which is the cheapest area to buy a resale home?
How long is it taking to sell a home in my ZIP code?
What is the balance of supply and demand for resale homes in my city?
What proportion of homes for sale are short sales or pre-foreclosures?
Where are prices changing fastest?
What percentage of listings are finding a buyer before they are canceled or expire?
Are today's list prices realistic compared with achieved sales prices?
I would love to get you this valuable market data and wealth building insights so you can build your future.
And because I am with a virtual brokerage with more than 25,000 agents, I personally have access to ALL their listings BEFORE they ever go on the market. With new NAR rules effective 4/6/20, agents are only allowed to pre-market to their own brokerage. You will not get this with ANY local brokerage office.
Working with Sheryl Willis at eXP Realty DEFINITELY Pays.
602-748-5588