Greater Phoenix Market Update – June 2020
Many people have been sitting on the sidelines, waiting for another housing crash, so that they could buy a new home for pennies on the dollar. Unfortunately, that’s not what’s happening. Let us fill you in on the Phoenix area housing market for June 2020.
During March and April, the housing market really slowed down while people were sheltering in place. Sellers were afraid of putting their homes on the market, and buyers were afraid of the economic uncertainty. As we got into early April, we could see that prices were not dropping and serious buyers were still buying homes, but sellers were still reluctant to put their homes on the market. This has brought us to where we are today.
Even though we never officially came out of a seller’s market, the Phoenix area housing market is now swinging strongly in favor of sellers. This is mostly due to the low supply of new listings, which is extremely weak compared to normal. In fact, as of June 4, 2020, we only have 46 days of supply on the MLS. Anything less than 6 mos of supply puts us in a buyer’s market, so you can see how far we’ve swung in the other direction.
Several cities in the Phoenix metro that are a bit slower, due to their higher price points, but getting stronger are Cave Creek, Fountain Hills and Scottsdale. Paradise Valley is in a balanced market, meaning supply equals demand, also due to the high price point.
Sun City is the only city that is actually in a buyer’s market. This age restricted market has been hit pretty hard due to the vulnerable population, so many of the residents of Sun City are sheltering in place to avoid getting sick.
Overall, demand for housing is going crazy, and supply is extremely low. This WILL lead to increased sales prices in our market. The average sales price in May 2020 was $348,000, and the average days on market was 47. Homes sold in May got 98.4% of the asking price.
I’m Jennie Gwinn, and I’m Tracy Mask with Aurelia Realty Group at Realty Executives. If you’ve been waiting to buy or sell, you may want to jump in now! It doesn’t look like things will be cooling off any time soon. We are digital marketing experts and would love to help you sell your home, or get you into a new home. Give us a call, text, or email us any time.