Join Ian as he covers the housing market trends of the Phoenix/Scottsdale area for April 2020
Hi everyone, this is Ian with The Kay-Grant Group. Today we will be covering the housing market statistics reported from April 2020. There are some interesting trends I am going to be covering with the restrictions that we had last month due to Covid 19. So let’s jump in and see what happened.
Looking at total housing inventory we actually had a month-over-month decrease of -1.4% while year-over-year shows a decrease of -22.2%. While this might seem odd, as most would have expected a larger amount of inventory to come off of the market, it will make a bit more sense in a later slide.
Now when we look at current available inventory as of May 29th, which is 16,717 which you can see there, we actually see a dramatic drop from last month by almost 7%. So if you were wondering if now is the time to sell. The answer is absolutely yes.
And to no one’s surprise sales were down -19.7% month-over-month and year-over-year is down -27.1% for obvious reasons. However there is a silver lining to this. For years sections of the housing industry, like title companies, have been very slow to adopt online forms. Mostly leaning towards traditional paper. But across the housing industries we have seen a strong move to this trend, and we will likely see close to 100% adoption by the end of the year.
When we look at new list prices there was a slight increase of +0.4% year-over-year. The year-over-year median price is up +5.1%.The main reason we are seeing this increase is because we normally expect a larger amount of inventory to come on the market during the second quarter and help soften the market a bit. But due to the actual drop in inventory availability that is why we have seen an increase.
Looking at the average sales price for April we see a significant increase of 8.6% and the median was up by 11.1%. Now in the full STAT report, which will be linking to below, it was forecasted that the average sales price would drop by almost 6% and the median would drop by a little over 3%. Let’s see if that is the case.
As of May 29th the average sales price was actually $377,137. Which is actually an increase of a little over 2%. What could explain this? First is the low inventory. The other factors would be our restrictions being lifted so we are seeing more traffic overall. There also seems to be a strong desire to move here from more congested areas on the East and West coast.
So the overall assessment is that if you are looking to sell your home. Now is absolutely time to get it on the market. Where we typically see a bit of a price softening trend this time of year this is completely going against historical trends. But if you are looking to buy or sell, or would like a free home valuation give us a call we will be more happy to help you.