To learn more about Maricopa County housing trends, read our August 2019 Phoenix real estate market report. Just when we thought inventory couldn’t fall anymore, it dropped again and we now face a real housing shortage (at some price points).
As of August 28, there are just 13,249 actively listed properties on the market–this includes all housing types. The average days on market (ADOM) for active listings in 105, but if we look at properties priced under $300K, this number drops significantly–see the graph below for more detail. As you can see, for homes priced under $300K, there is less than a one month supply of homes.
As for recently sold properties, there have been 8784 sales (all product types) in the past 30 days. The ADOM for the recently sold properties was 61 and the sold to list price ratio was .99–not much negotiating going on–especially at the lower price points. With inventory falling and prices rising (although not dramatically) some might think we were on the cusp of a bubble. There are certainly similarities to the market before the crash of 2008, but there are some key factors that would give some a measure of comfort.
Most importantly, we are not seeing runaway appreciation like we did in 2004 and 2005–currently, our rate of appreciation is below 6%–this is above normal, but not overly high by any stretch. Demand is higher than average but nowhere near what we saw in 2004. Finally, new construction permits are half of what we saw in 2004/2005–builders are more cautious and so is the public in general.
As long as inventory doesn’t dip too much farther, the market should remain stable. Mortgage rates are very low and many of our clients are refinancing–if you need a great lender, check out our list of top mortgage professionals. For info about the Scottsdale market, check out our latest post. If this August 2019 Phoenix real estate market report has generated some questions, reach out any time–we’d be honored to help.