Before we get into the Phoenix Real Estate Market Report in March 2020, I have a commentary written by Tina Tamboer. Tina is the Senior Housing Analyst with the Cromford report. She was nice enough to let us use her summary of the Greater Phoenix Metro area as a backdrop for what is happening in Phoenix this month. Here is her commentary…..
The Greater Phoenix Metro Summary Analysis Real Estate Market Report
Officially a Frenzy: 11% More Contracts Than Listings For Sale
Contracts Over $1M up 60% Over Last Year
For Buyers:
Not even the COVID-19 coronavirus can slow down the Greater Phoenix housing market. For every 100 active listings in the Arizona Regional MLS, there are 111 that are already under contract. Greater Phoenix is
officially a frenzy and it’s only March. We can expect to see this continue at least through May without relief as buyer demand is typically highest in the Spring.
It’s even more dramatic in the Southeast Valley, West Valley and North Phoenix and all areas where prices land between $175K-$300K. For a stark example, on March 7th in Glendale, there were 3 properties for sale
between $175K-$200K and 25 under contract. In Chandler, there were 3 properties active between $200K-$250K and 37 under contract. In the North Phoenix Moon Valley area there were 8 properties for sale between $250K-$300K and 30 under contract.
There is a reason why people continue to pounce on what’s available for sale. The average price for a 1,500 -2,000 SF home is now $331K and continues to rise. That may seem alarming considering it was $324K at a peak in 2006, but contrary to popular belief it’s more affordable today because of the interest rates. In April 2006, with an average of 6.51% the monthly principal and interest payment on a 30-year fixed loan with 10% down was $1,854. Today at an average of 3.45% the same home is $1,331, a savings of $523. More recently, over the last 16 months despite prices having risen 9.4% for median-sized homes the monthly payment dropped by about $112/month.
For Sellers Phoenix Real Estate Market Report March 2020:
There’s not much more to say to sellers under $500k, frankly, their homes may be sold before we’re done saying it. The stark gap between supply and demand doesn’t ease up until budgets go over $600K. Sellers in areas such as North Scottsdale, Paradise Valley, the Camelback Corridor, and Downtown Phoenix still have plenty of competition to contend with, but well-priced, updated, move-in ready homes will still see heightened buyer interest.
The luxury market is doing exceptionally well, however, sellers should not expect the stampedes seen in the rest of the market. There are 522 properties under contract over $1M, up a whopping 60% over last year at this time. However, there are still 1,657 competing properties for sale in this price range and those that sold in February averaged 5-6 months on the market.
The commentary was written by Tina Tamboer, Senior Housing Analyst with The Cromford Report ©2020 Cromford Associates LLC and Tamboer Consulting LLC
Below you will find the statistical breakdown and more for the Phoenix area Real Estate Market Report February 2020 ( with earlier month and year data).
View All Current & Past Phoenix & East Valley Real Estate Market Reports
Below is a snapshot of Phoenix’s Real Estate Market Statistics for February 2020
What are the Average Temperatures in the Phoenix Metro area?
| Month | Low | High |
|---|---|---|
| Jan | 43.4°F | 65.0°F |
| Feb | 47.0°F | 69.4°F |
| Mar | 51.1°F | 74.3°F |
| Apr | 57.5°F | 83.0°F |
| May | 66.3°F | 91.9°F |
| Jun | 75.2°F | 102.0°F |
| Jul | 81.4°F | 104.2°F |
| Aug | 80.4°F | 102.4°F |
| Sept | 74.5°F | 97.4°F |
| Oct | 62.9°F | 86.4°F |
| Nov | 50.0°F | 73.3°F |
| Dec | 43.5°F | 65.0°F |
Phoenix’s coldest month is January when the average temperature overnight is 43.4°F. In July, the warmest month, the average day time temperature rises to 104.2°F.
If you would like to see specific homes as they come on the market, click here to get email updates.
A look at Phoenix’s current Sales Price. Real Estate Market Report
In February, Phoenix’s Median Sales Price was $271,500 as compared to last months $265,000. With overall inventory at historic lows, the median price will be driven more on which price points have the inventory that sells.
If you are in the process of Buying or Selling a Home, Click on the highlighted link to see a number of interesting articles.
What does this mean if you are a Seller or a Buyer?
Real Estate Market Report
As the chart above shows, Inventory in Phoenix is at 1.18 months down from last month’s 1.54. This is a dramatic decrease from last years 2.81 months of inventory. The forecasters still believe that inventory levels will remain low for the foreseeable future. Sellers have the advantage due to such few Homes on the Market.
Buyers will have to make competitive offers. Also, as few contingencies as possible. Buyers will need to act quickly. So they can beat out the competition with the offer.
We will need to watch the impact the Coronvirus has on the Market.
If you would like to see specific homes as they come on the market, click here to get email updates.
What is the annual rainfall in Phoenix?
Average Rainfall for Phoenix
| Month | Precipitation |
|---|---|
| Jan | 0.83in. |
| Feb | 0.77in. |
| Mar | 1.07in. |
| Apr | 0.25in. |
| May | 0.16in. |
| Jun | 0.09in. |
| Jul | 0.99in. |
| Aug | 0.94in. |
| Sept | 0.75in. |
| Oct | 0.79in. |
| Nov | 0.73in. |
| Dec | 0.92in. |
The driest month in Phoenix is June with 0.09 inches of precipitation, and with 1.07 inches March is the wettest month.
Homes For Sale in Phoenix AZ
Below are Homes that have come on the market in the last 7 Days around the Median price range. Also below the pictures, you will see a Chart of all the Phoenix homes by price and Type:
Below are all the homes available in the city of Phoenix by Dollar amount and type:
Below you will see the links for the other cities in the East Valley:
View All Current & Past Phoenix & East Valley Real Estate Market Reports
Contact the Shirley Coomer Group at Keller Williams Realty Sonoran Living
Call or Text: 602-770-0643 for more Real Estate Information.
