Join Ian as he covers the Arizona real estate market report for June-July 2020.

 

Video Transcript:

Hi everyone this is Ian with the Kay-Grant Group, today we will be doing an overview of the real estate market in Arizona for June and July. Comparing month over month performances and what we have to look forward to in August. It has been quite the roller coaster so let’s dive right in and see what is going on out there and what we can expect.

 

Right now we have got a total housing inventory problem and it doesn’t seem to be getting any better. When compared year over year we are seeing a little over a 27% drop. Again this is most likely due to uncertainty about what is going to happen in the near future with Covid-19. But for those that are getting their homes on the market right now are absolutely making out like bandits and we will cover those details a little later. Now this graphic is from the official Property Statistic report but it represents about a month delay in numbers reporting. So let’s look at the inventory availability as of July 27th.

 

And it looks like this isn’t getting any better. With a total of 13,448 active listings this shows that the market is absolutely starved right now. But this is only the first half of the story. 

 

Here is the roller coaster curve, with a month-over-month increase of almost 39% and the year over year is just about even. With this unprecedented rise in the number of sales outpacing new listings, it is only working to further the market starvation. So why are so many sales occurring right now? This is most likely due to pent up demand from months prior but in general we are also seeing a rush on the market overall. There was even a home that recently sold in Phoenix that went for $100,000 over asking price. 

 

Looking at the average sales price it sits at $392,502 which represents an increase of almost 16% year over year. So this definitely means the market will continue to soar in the coming months right?

 

While all signs point to yes, one indicator we can use is the popularity of the most common search terms, previously we saw the search terms “Arizona Homes for Sale” and “Homes for Sale in Arizona” go through a massive spike in popularity during the rush in July. Now we are seeing a declining trend. Though this isn’t the main indicator if home values will decline, it is something that can help us get a better picture of what the market is going to look like in a couple of months.

 

We predict that we will see a slight cooling in the market but it won’t be by much. It is still an absolutely great time to get your home on the market as we are seeing an average of at least 5% over asking offers come in on the most desirable homes. So if you are looking to sell your home or if you are looking to buy a home in Arizona look us up, The Kay-Grant Group will be more than happy to help you out. Thanks for joining us and we will see you next month.

 

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