Before we get into the Tempe Real Estate Market Report February 2020, I have a commentary written by Tina Tamboer. She 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 Tempe this month. Here is her commentary…….
The Greater Phoenix Metro Summary Analysis Real Estate Market Report
MLS Luxury Sales Over $1M Up 52% in January
Supply Between $200K-$250K Down 60%
For Buyers:
Supply continues to drop as the market heats up with the seasonal rush of Buyers. Typically, we would see supply rising at this time of year as January is a strong month for new listings to hit the market.
However, this year’s new listings year-to-date are down 17% from last year and January 2020 had the lowest number of new listings recorded going all the way back to 2001. Combine this with a 21% increase in sales volume and the 4th highest January recorded for MLS sales, and it’s no surprise that supply is plummeting.
While supply is down in all price points, it’s felt the most between $200K – 250K. Supply in this price range is nearly 60% lower than this time last year and a quarter of sales in the last 3 months have recorded over asking price.
Seller-paid closing cost concessions are also down. Nearly 22% of all sales in the 1st Quarter to date have included some form of seller-paid or assisted closing costs. That’s the lowest percentage recorded in nearly 5 years.
For Sellers:
The luxury market continues to go gangbusters in 2020. Sales over $1 Million in 2019 outperformed 2018 by 10%, which makes it the #1 year for in Greater Phoenix in this price range. January closings were up 52% in this price and listings under contract are up 43%.
With all this demand, one would think price appreciation would be rising significantly however that hasn’t happened yet. The average sales price per square foot between $1M-$2M has only appreciated 1% while those between $2M-$3M have appreciated 0.2% and those over $3M have increased 6%. The current appreciation rate per square foot is between 8-9% for Greater Phoenix as a whole.
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 Tempe area Real Estate Market Report January 2020 (with the prior month and year data).
View All Current & Past Phoenix & East Valley Real Estate Market Reports
Below is a snapshot of Tempe’s Real Estate Market Statistics for January 2020
A look at Tempe’s current Sales Price. Real Estate Market Report
In January, Tempe’s Median Sales Price was $313,000 as compared to December’s $315,000 basically flat. In Tempe, inventory levels remain extremely low at 1.03 months of inventory. Because of the low inventory numbers, the price points that have the remaining inventory will impact Price more than anything else.
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 is the annual rainfall in the Phoenix Metro area?
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.
What does this mean if you are a Seller or a Buyer?
Real Estate Market Report
As the chart above shows, Inventory in Tempe continues to remain very low. The inventory has moved down from last month’s 1.13 to 1.03 in January. The Seller has a big advantage due to such a low number of Homes on the Market in the area.
Buyers will have to look to make offers that are very competitive in price along with as few contingencies as possible. Buyers should be ready to react quickly when they see a home they want to place an offer on so to beat out the competition. Make sure your agent talks with the seller’s agent to see if any specific terms are desired to help shape your offer.
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.
If you would like to see specific homes as they come on the market, click here to get email updates.
Homes For Sale in Tempe 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 Tempe homes by price and Type:
Below are all the homes available in the city of Tempe 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
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.
Contact the Shirley Coomer Group at Keller Williams Realty Sonoran Living
Call or Text: 602-770-0643 for more Real Estate Information
Tempe Real Estate Market Report February 2020
