Join Ian as he covers the housing market trends of the Phoenix/Scottsdale area.
Hi everyone! This is Ian with The Kay-Grant Group. Today we will be covering the state of the housing market in Arizona for April of 2020. We will be looking at the most recent published reports and I will be going over the most current relevant statistics we have access to. So without further ado, let’s get into it.
The strongest indicator when we are predicting housing prices is going to be the amount of available inventory. Naturally the lower the inventory and higher the demand is going to drive up the price per square foot and vice versa. When we are looking at total inventory available we do see a sharp upward trend as opposed to previous year trends. With an increase of 17.1% month over month but still falling very short when you compare it year over year. This is due to a couple of factors. The most obvious being the coronavirus orders to stay at home has slowed home purchases but not home listings, and the normal uptick for available inventory that we historically see this time of year. Also, since construction has been considered an essential service, new home construction has likely been allowed to play a little catch up.
Though don’t let this fool you. As of April 29th 2020 the total active listings has dropped from the previous slide I just showed you which was current as of the end of March 2020. Not by a lot but it does show that for the next month we are likely going to see purchase trends pick up.
When looking at total sales this is the curve that we would expect to see this time of year as you can see from the previous year comparison. Though normally we would have expected a sharper curve but, for reasons stated before it is pretty similar year over year.
You would think that the current state of affairs could be causing a lack of buyer competition, and it would contribute to the slight dip when we are looking at new list prices of 0.4% year over year.
But this is contradicted by actual sales prices where we see an increase of 11.2% year over year as of the end of March. Looks like everybody still wants to move to Arizona.
In the coming months we predict it will still be a seller’s market if inventory demands are still not being met. So if you are interested in selling your home we are more than happy to give you a free valuation of your home. Thanks for listening everyone, and we’ll see you next time!
If you would like to see the full report you can click here.