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 February 2020
Here are the basics – the ARMLS numbers for February 1, 2020 compared with February 1, 2019 for all areas & types:
Interpreting the Numbers:
In last month’s report, its was suggested that buyers needed to hope for a big surge in new listings. Not only did they not get anything close to a big surge, they didn’t even get a tiny up-tick. In fact, unexpectedly, there are far fewer new listings than normal at this point in the year. This lack of supply was described as shocking at the start of 2020. It appears that was an understatement at this point! It is almost (but not quite) unheard of to see supply drop between January 1 and February 1, but active listings without a contract are down 1.4% for the month. They are down a colossal 35% compared to a year ago!
Meanwhile, demand has been picking up! Monthly sales are up 17% compared with last year and listings under contract are up 16%. Given that there are so few homes to buy, this is impressive. Economics 101 teaches us that lower supply and higher demand is the perfect recipe for higher prices. So far, the reaction of pricing has been muted. However, no one should expect it to stay that way. The spring selling season has just started and, by the time we get to June, a significant upward adjustment in pricing is likely. In addition, mortgages are becoming easier to qualify for in many different ways, so demand is likely to increase even more so; however, there is no sign of more supply coming along to satisfy it. In this situation the market is likely to become both frenzied and frustrating for many people.
One way to make sure you stay sane in this crazy market is to team up with a seasoned professional! Our agents know the market! They can help you get the most for your home, and because they do their research and regularly network within the community, they are well equipped to help you find a new place to call home. If you are interested in knowing the current value of your home, or if you are looking for an agent who really knows the inventory and can help you find a home in the Phoenix Metro area, contact us at 480-425-9300 or firstname.lastname@example.org. Despite these crazy market conditions, we are confident we can help you!