With February drawing to a close, our inventory continues to drop. Don’t miss our Phoenix Market Update for February 2020.
We are seeing shades of the 2005 market frenzy–when buyers, desperate for a home, were lining up to make offers well over the asking price. In my humble opinion, this is not a great place to be. Inventory across the county is dangerously close to 10,000 units. As of February 29, 2020, there are 11,078 active listings in Maricopa County. Think about our population for a minute–there are over 4.7 million people in the Phoenix metro area and there are just 11,000 properties available.
Digging into the numbers further, active listings have been on market 100 days–this number has not changed much in the past few months. There are currently 11,957 pending sales and since January 31, 2020, there have been 8048 closed sales. The average sold price was $376,122 and the list to sale price ratio was .99. The average days on market for the closed sales was 64–compare this to 63 days cited in last months’ market update.
The following graphs show supply v demand for this year, 2019 and stats going back to 2015–our inventory has been falling from around 18,000 in 2015 to current levels:
Home loan rates are near an historic low point. Buyer demand is strong at most price points under $1M and unless the recent stock market tumble leads us into a recession, our market should remain active and strong for a while. The real question is how much lower will inventory fall before heading the other way. There is a lack of available new construction and since major developers had stopped buying up large blocks of land a year or more ago, there may not be much in the way of new inventory hitting the market soon. We hope you enjoyed our Phoenix Market Update for February 2020. If you have a real estate question or need, reach out any time.