Before we get into the Tempe Real Estate Market Report for February 2021, 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 Tempe this month. Here is her commentary…..
- ?️ The Greater Phoenix Metro Summary Analysis Real Estate Market Report
- ? For Buyers:
- ? For Sellers:
- You may also be interested in learning about Seller Closing Costs in Phoenix, Az.
- ? Below is a snapshot of Tempe’s Real Estate Market Statistics for January 2021
- ?️ What are the Average Temperatures in Phoenix?
- ? A look at Tempe’s current Sales Price. Real Estate Market Report for February 2021
- ❓ What does this mean if you are a Buyer or a Seller?
- ?️ What is the annual rainfall in Phoenix?
- ?️ Homes For Sale in Tempe AZ
- ? Below you will see the links for the other cities in the East Valley:
?️ The Greater Phoenix Metro Summary Analysis Real Estate Market Report
Median Sales Price Up 18%, Inventory Down 61%
Luxury Sales Over $3M up 140%
? For Buyers:
Yes, it’s still a good time to buy. Is it fun? No.
Inventory is down 61% from this time last year and competition among buyers is steep. New listings are not keeping up with demand and the purchase experience can be stressful, disappointing and heartbreaking; but it’s a good time to buy.
The median sales price has risen 18% to $339,000 and the median monthly rental rate through the Arizona Regional MLS has also risen 18%. A 1,500-2,000 square foot home is roughly $1,600-$1,700 per month to purchase with 10% down while that same home rents at a median of $1,850 per month, up $250 over last year at this time. For those who would like to reduce and stabilize their monthly housing expense with a historically low 30-year fixed mortgage rate, it’s a good time to buy.
According to the National Association of Home Builders, a family making the median annual income of $72,300 in Greater Phoenix could afford 60.6% of what sold in the 4th Quarter of 2020. That rate has been steadily declining, but it’s still within the normal range of 60-75% for now.
In San Francisco, the median sales price is $1,350,000 and a family making the median annual income of $130,900 can only afford 11% of what’s selling there. For those who can work from home and no longer need to live in the same expensive city as their employer, it’s a good time to buy.
Finally, it’s a good time to buy because Greater Phoenix is experiencing a housing shortage. Over the past decade, a gap between the total number of housing units built and the total number of people to be housed has been growing wider and developers have not been able to bridge it. This is not something that will be solved this year, and probably not next year either. As affordability wanes, it’s a good time to stake your claim on a home while it’s still an option.
? For Sellers:
Brace yourself, the showings are coming. It’s not uncommon these days to see a stampede of buyers through a home within the first day or so on the market. It doesn’t matter the price range, all areas and types of homes are flying off the market and so far this month 37% of closings are over the asking price.
The most impressive development has been in the luxury market. After California announced it was considering raising income and other taxes last summer, contracts over $1M surged in Greater Phoenix. So far in 2021, sales between $1M-$3M are up 102% and sales over $3M are up 140% over last year and there is little sign of a slowdown.
Appreciation rates based on annual sales between $1M-$2M range between 5%-6.5% and 2%-5% over $2M. While the northeast cities of Paradise Valley and Scottsdale have long been associated with luxury real estate, Gilbert has emerged in the top 5 cities for sales over $1M in 2020.
Appreciation rates for homes sold below $600K range from 7%-11% annually and 5%-7% for sales between $600K-$1M.
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 2021.
? Below is a snapshot of Tempe’s Real Estate Market Statistics for January 2021
?️ What are the Average Temperatures in Phoenix?
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 Tempe’s current Sales Price. Real Estate Market Report for February 2021
Tempe’s Median Sales Price in January was $350,000 up from last month’s $344,750 (but still slightly below Novembers $355,000). Inventory levels here are one of the few areas where the number of homes on the market is higher than most other metro Phoenix areas. Prices here have remained fairly stable. Tempe has always been one of those unique markets since it has ASU in it. So we will see what happens next.
❓ What does this mean if you are a Buyer or a Seller?
Real Estate Market Report
As the chart above shows, Inventory levels hovered close to last months .60 months of inventory at .66. So, with inventory, remaining low, buyers should expect multiple offers. Submit your offer with as few contingencies as possible. Also, make sure you know what the market price is…since you may have to go over that to get the property.
Sellers should be prepared for multiple bids on their homes. We are seeing this low inventory creating a bidding war where buyers end up bidding above the sales price to get the house. Know your actual home’s market value, since you may have to look at offers over list price. Remember, if the appraisal comes in under the purchase price, it could complicate the deal.
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?
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 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:
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 2021