Last month was really hectic and we missed our May update. Let’s jump in to our Phoenix market real estate update for June 2020.
There are a few factors driving the real estate frenzy across the valley. We don’t like to use the word frenzy, but below $600K, homes are flying off the shelves.
So, what’s going on? During the first 30 days of the stay-at-home order, real estate activity definitely slowed down–we were in our busiest time of year when covid hit and due to the “lock-down”, activity waned somewhat and there was pent-up demand building. Second, home loan rates hit an historic low recently (though rates have climbed in the past few weeks). Finally, Arizona housing inventory, which had started to rise, began falling quickly.
We now sit at less than 9000 active homes on the market–this is the lowest point in memory since 2005. If inventory continues to fall, we could hit the lowest point in the past 20+ years.
Let’s take a look at some of the numbers.
There are 8985 active listings across Maricopa County. Currently, there are 14,450 pending sales and in the past month there have been 8492 sales. To see how things compare to May, check out the market summary for last month:
The average days on market for active listings is 105 and the average for recently closed sales is 54. None in our industry predicted such a precipitous decline in inventory and we are definitely nearing uncharted territory.
We are in a strong sellers market though above $1M there is still opportunity to do some negotiating.
Given what’s happened in our market over the past month or so, we are not going to make any predictions! If you’d like to see how things have changed in the past few months, check out our April market report. If you have a real estate question, please reach out anytime.