Market Update – March 2021

Let’s start with basics – the ARMLS numbers for March 1, 2021 compared with March 1, 2020 for all areas & types:

• Active Listings (excluding UCB & CCBS): 4,491 versus 11,003 last year. Down 59.2% from last year and down 13.3% from 5,180 last month.
• Active Listings (including UCB & CCBS): 9,094 versus 15,776 last year. Down 42.4% from last year and down 6.5% from 9,727 last month.
• Pending Listings: 8,027 versus 7,215 last year. UP 11.3% from last year and up 13.5% from 7,070 last month.
• Under Contract Listings (including Pending, CCBS & UCB): 12,630 versus 11,988 last year UP 5.4% from last year and up 8.7% from 11,617 last month.
• Monthly Sales: 8,020 versus 7,470 last year. UP 7.4% from last year and up 9.1% from 7,354 last month.
• Monthly Average Sales Price per Sq. Ft.: $227.89 versus $185.09 last year. UP 23.1% from last year and up 4.8% from $217.47 last month.
• Monthly Median Sales Price: $349,000 versus $295,000 last year. UP 18.3% from last year and UP 2.9% from $339,000 last month.

In March 2020, The Cromford Report wrote that the lack of supply was making life extremely difficult for buyers. It is now down almost 60% since then and doesn’t look to slow down any time soon! In fact, AZ Big Media Article  recently referenced a Zillow expert survey that lists Phoenix as the second hottest housing market!

So, what does this mean for buyers and sellers in Maricopa County? It means that home buyers might need to get creative on ways to craft a winning offer and sellers need to be savvy about evaluating the offers they receive. In both instances, we believe it will pay for both buyers and sellers to work with real estate agents that know their craft. Here are a few things you might want to know right now:

What kind of tactics are BUYERS are using to successfully acquire property in this market?

• Shortened or waived inspection periods
• Appraisal Waivers or offers to pay the difference between appraisal and purchase price in the event the appraisal comes in low
• Escalation Clauses which are clauses that are added to the purchase contract that essentially allow a buyer to say: “I will pay x price for this home, but if the seller receives another offer that’s higher than mine, I’m willing to increase my offer to y price.”
• Post-recordation Occupancy or Leaseback to the sellers
• Full cash Offers
• Quick Close

In order to be successful as a buyer in this market, we highly advise you to work with an experienced real estate agent. It vital to have a full understanding of the tactics listed above as well as the possible ramifications of using these tactics. It is important to understand that you may not even be able to make offers using the tactics above if you are financing a property. A good agent will be able to guide you and help determine which, if any, of these tactics may be able to help you be able to craft the winning bid.

What can sellers expect in this market? 

Because we are in such a strong sellers market, many people may think that there is no need to use a REALTOR® to sell their home. Instead, they put their home up for sale as a For Sale By Owner. Unfortunately, this is most likely not the smartest move a seller can make. Not only will the homeowner have to deal with people coming in and out of their home regularly, they will also need to be able to decipher the language written into the purchase contracts. In order to fully understand the terms of a real estate contract and what those terms could potentially mean for you as the seller, we highly recommend you use a trusted professional real estate agent. Many of our agents are well versed in reviewing and comparing multiple offers. They can alert you to potential pitfalls in the language of the contract and help you decipher which offer is going to help you achieve most, if not all, of your goals as a seller. A good agent will also be able to pre-market your home in ways you could not if you were to list it For Sale By Owner. A good agent may actually be able to sell your home, for the amount and terms you want, prior to it even hitting the market or being syndicated to sites like Zillow or Realtor.com.

If you are looking to buy or sell right now, we have a team of seasoned professionals ready to help you. Email us at info@azarchitecture.com, and we will set you up with an agent who knows your area and can help you achieve your real estate goals!