Be part of the conversation: azarchitecture/Jarson & Jarson Architecture blog covers architecture and civic topics that comment on what’s happening in the Valley’s diverse design community. Here’s what’s happening now:
Monthly Market Update January 2020
Let’s start with the basics: The ARMLS numbers for January 1, 2020 compared with January 1, 2019 for all areas & types:
Interpreting the Numbers:
WOW! In a nutshell, these numbers are telling us that demand remains high while inventory remains remarkably low. Truthfully, we find the current lack of supply to be quite shocking. There has been a 30% decline since this time last year to reach the lowest level since August 2005. Keep in mind that the population in our area has grown more than 20% since 2005!
It is our opinion that this severe shortage is likely to cause a significant rise in prices. Currently, the median sales price is already up 11% over the last 12 months, and the average price per square foot is up almost 9%. We suspect this statistic is also headed for a double figure appreciation rate. Buyers can only hope for a surge in new listings arriving over the next 12 weeks which could happen if sellers are tempted by the higher pricing they could possibly achieve; however, if the sellers are planning to stay in or around Phoenix, they will have to pay more for their new home too. Phoenix is currently the strongest large-city housing market in the USA. This is fueled by inter-state population movements by both retirees as well as people moving here from California and other Western states for work and a lower cost of living. We think demand is likely to remain healthy despite the rising prices.
The primary question is whether we will see any change in the meager supply of homes for sale. If there is a rise in available listings, it is likely to take place over the next few weeks. There was no sign of an improvement in new listing flows over the last several weeks of 2019, but 2020 is a new year! So, we will be watching closely for signs of change, and keeping you up to date on the latest happenings in the real estate market for the Phoenix Metro area.
If you are interested to know the value of your home in this hot market, contact us at 480-425-9300 or firstname.lastname@example.org. We would love to help you list your home or find a new one. With years of expertise backing us, we are confident we can help you!
Welcome to 2020!