In January we reported that housing inventory levels were incredibly low–well, now we’ve dipped even farther. Let’s dig into our Phoenix metro real estate update for March 2021. A few days ago, Phoenix metro housing inventory slid into the three thousand territory–as of March 26, we sit at approximately 4600 active listings across the county (for all product types).
What’s driving the dramatic decrease in available inventory? We are seeing record numbers of people moving to Arizona, but I think we’re also seeing potential sellers hold off on listing because there is no place for them to move. Although new construction permits are picking up, there is not nearly enough new home inventory to satisfy demand. We are in a vicious cycle right now with sellers sitting on the sideline due to housing fears–fear that if they try and capitalize on this hot sellers market, they will have a nightmarish time finding a replacement home to purchase or a property to rent. The rental market is equally as hot right now, if not more so.
Here are some recent stats provided by the Arizona Regional Multiple Listing Service:
The above stats are from February of 2021–note the changes from February 2020. Here are some stats for March:
- 12,768 properties under contract
- 760 listings “coming soon”
- 16,654 properties sold since 2/1/2021–this indicates a tremendous amount
- of sales activity
- Average days on market for recently sold properties: 38
- Average List to sale price ratio: 1.01–this means that on average, homes are selling for more than the asking price
- Average dollars per square foot obtained at sale: $239
This graph shows how the Phoenix metro median sold price has changed over the last 24 months (for single family homes only):
Cites like Scottsdale and other areas are suffering from a lack of housing inventory and in the short term, this situation does not appear likely to change. While mortgage rates have risen slightly, rates overall are very attractive. The summer months generally bring a slowdown so it will be interesting to see if this market remains hot once our temps begin to rise.
Thanks for taking a look at our Phoenix metro real estate update. If you have real estate questions or need help buying or selling a home, we have the expertise to help you navigate this unprecedented market. Reach out day or night and we’ll do our best for you!