Market Update November 2020

Here are the basics – the ARMLS numbers for November 1, 2020 compared with November 1, 2019 for all areas & types:

• Active Listings (excluding UCB & CCBS): 8,682 versus 14,525 last year – down 40.2% – but up 7.4% from 8,101 last month
• Active Listings (including UCB & CCBS): 13,901 versus 18,322 last year – down 24.1% – but up 4.5% compared with 13,305 last month
• Pending Listings: 7,862 versus 5,919 last year – up 32.8% – but down 1.7% from 7,999 last month
• Under Contract Listings (including Pending, CCBS & UCB): 13,081 versus 9,716 last year – up 34.6% – but down 0.9% from 13,203 last month
• Monthly Sales: 9,992 versus 8,037 last year – up 20.5% – and up 3.6% from 9,641 last month
• Monthly Average Sales Price per Sq. Ft.: $207.37 versus $174.14 last year – up 19.1% – and up 4.3% from $198.84 last month
• Monthly Median Sales Price: $332,000 versus $285,000 last year – up 16.5% – and up 1.6% from $326,800 last month

If October of 2019 was a good month in real estate in Maricopa County (and it was), October 2020 was GREAT! In fact, in the most recent ARMLS Stat Report, data analyst Tom Ruff says, “Since the March and April market step back, ARMLS housing numbers have been running at a frenzied pace, leaving housing analysts running to their thesauruses in search of new superlatives. We expected a record October for home sales, and a record October is just what we got. October in a word was prodigious.”

As we have mentioned before in our monthly market update, one of the driving factors behind this market is a shockingly low amount of listings. According to a recent talk given by Tina Tamboer, Senior Analyst for the Cromford Report, we did see a slight surge in listings during the month of October; however, that surge has already seemed to slow a bit.

The lack of listings coupled with increased demand and historically low interest rates leads many experts to believe that our market won’t be making a turn around any time soon. According to Ruff, “When you pair the number of homes listed (7,824) with the number of listings under contract (12,586), it becomes readily apparent that our current market trends will not be changing anytime soon. Homes are selling quickly, and sellers are getting their asking price, in many cases more than they are asking. The momentum of our current market will propel our current trends into 2021. While current market conditions cannot continue indefinitely, there are no foreseeable changes in sight. In other words, the beat goes on.”

Another factor driving the current market is in-bound migration from places such as California and Texas. In a recent article posted by the Scottsdale Area Association of REALTORS®, Vanessa Vogel, senior research analyst for CBRE in Phoenix, said, “migration has only accelerated from California to Arizona amid the pandemic, for both office-using and industrial jobs. Office workers have newfound flexibility to work remotely while industrial users still want to be in driving distance to the ports. Employers can find a high-quality workforce and location at a lower cost in Arizona.”

Interestingly enough, it is not just the affordable housing market that is being impacted. Luxury sales are soaring too! According to the Cromford Report, “During October we saw 37 closed listings over $3 million in Maricopa County. This is not only the highest total for any October in history, it is the highest total for any month in history!” In turn, with the rise in prices and overall lack of supply, the market for homes under $300k is essentially disappearing all together.

In a nutshell, we are still very firmly in a sellers market. This is great news for anyone looking to list their property now. If you have questions about what you need to do to get top dollar for your home or how to best bring your home to the market, don’t hesitate to reach out to us. We have a team of agents ready and willing to help you.

As for those buyers out there, don’t fret! The Phoenix Metro Area is still a great place to buy a home. In fact, Wallethub recently listed 5 Phoenix Metro Cities (Gilbert #5, Peoria #17, Surprise #20, Tempe #23 and Chandler #25) in it’s list of Best Real Estate Markets. According to the article, those five cities made the top 25 places to buy a house in the US. To determine the Best Real Estate Markets, their experts used “24 key indicators of housing-market attractiveness and economic strength.” You can read the full article here.

If you are looking to purchase a home, you need a great REALTOR® on your side now more than ever. Reach out to us directly at info@azarchitecture.com, and we will pair you with the right agent to fit your needs. Whether you want to buy, sell or just chat about real estate or architecture, we are here for you! We have been in this game for many years, and we love what we do.