May/June 2020 Arizona Housing Market Report - It is time to SELL your home!
This is Ian with The Kay-Grant Group. Today I will be going over our housing market update for the Scottsdale/Phoenix area and we will be focusing on Maricopa county as that is where all the action is. And boy is there a ton of it. I will be including the official Arizona Property STAT report which has about a month lag time and I will be giving you current statistics pulled directly from the Arizona MLS. So without further ado let’s get into it.
Let’s go ahead and open with total housing inventory from the STAT report. Officially as of the end of May the total housing inventory on the market was 16,870, which was just a little higher than when I did this report last month by 153. Since we are nearing the end of June let’s take a look at how much is on the market right now.
As of June 29th 2020, the available housing inventory in Maricopa County is 12,232. To give you an idea how much of a deficit that is; Last year for the month of June we had 19,778 available and that was considered low compared to previous years. This represents a 38% drop year-over-year. This is due to two main reasons, the obvious crisis we are having and so many are afraid to place their homes on the market, and we were headed towards a shortage anyways as new builds and new listings could not keep up with regular demand.
So what about monthly sales? That sure should have seen a drop right? Well sure, year-over-year we have seen a strong drop of almost 34%. However if we are not replacing that inventory, which clearly is not happening, it is causing a scarce inventory bull market run on home sale values. Due to this scarcity we ourselves have gotten between 5-7% over asking price for several of our listings.
Which correlates to the average sales price that we see in the MLS reports as of June 29th 2020. When compared to the average sales price for June of last year, this is an increase of a whopping 9% year-over-year.
Now I wanted to cover something a little out of the norm. This is something that I do when I am forecasting interest in Arizona real estate, which most are actually looking for the Phoenix and Scottsdale area. This is a snapshot from Google Trends, which I will link to in the blog post so you can see this for yourself over time, it logs interest in real time based on search terms. Two of the most popular searches for individuals looking for property in these areas and this includes the whole United States are “homes for sale in arizona”, and “arizona homes for sale”. Paradoxically, even with all of the negative press Arizona has received with our increase in cases the popularity of these searches has skyrocketed when compared to the last 12 months prior. So what does this mean? Most likely the word has gotten out that the housing market in Maricopa county has gotten burning hot based on the previous points laid out in this review.
Final thoughts on this is absolutely get your home on the market right now. There are many ways that The Kay-Grant Group can reach buyers and maximize safety in these times, which include 3D home tours, videos, and virtual open houses, and much more. So if you are looking to get your home on the market give us a call, we are more than happy to help you, and we’ll see you next month.
Alternatively you can also fill out our contact form and we will reach out to you as soon as possible.