Where are all the Phoenix metro home sellers?
Check out our Phoenix real estate update for August 2020. Inventory continues to fall! We actually dropped below 8000 active units which is crazy for a metro area of our size. After a few days below 8000, we jumped back up a few hundred units.
Currently, there are 8129 active properties for sale across Maricopa County. The average days on market for the active listings is 84 days. There are 13714 properties under contract which is a tremendous number for August–and there are 737 “coming soon” listings.
Over the course of the past month, there have been 8433 sales and those sales were on market an average of just 49 days! This number is down from last month.
The graph below shows Supply v Demand last month versus 12 months ago.
The average dollars per square foot obtained at sale over the last 30 days was $190 and the good news for sellers in the lower price points is that the average sale to list price ratio is 1.00–meaning buyers are paying full price. Keep in mind that the market actually changes by city/town and community and at some price points, there is excess inventory. Also, the condition and location of the property have a big impact on how quickly the home will sell and the price that can be commanded.
Home loan rates are hovering between 2.875 and 3.125% for “A paper” borrowers and we expect rates to remain low for the better part of the year and perhaps into 2021.
For now, we think demand and sales activity will remain strong–though at some price points we’re seeing a slight slow-down. If you have any questions about our Phoenix market update for August 2020, reach out anytime.