It’s no secret that the Metro Phoenix housing market is booming. In fact it’s one of the hottest markets in the country. The Arizona Multiple Listing System reports the following year over year statistics for March, 2021*
- Monthly sales volume up 13.7%
- Median sales prices up 18.8%
- Average sales prices up 24.8%
- Price per square foot up 24.1%
- Average new list price is $507,000 up 28.8%
- Median new list price is $375,000 up 21.0%
Even COVID-19 hasn’t had much of an impact on our housing market. Here are a couple of reasons why:
Metro Phoenix continues to be one of the fastest growing areas in the nation.
The Phoenix metro area continues to attract new residents for a number of reasons. Businesses such as Intel, Banner Health, etc. continue to expand, providing job opportunities in cities throughout the metro area.
Millennials especially are taking advantage of that fact. The relatively low cost of living compared to other areas of the country is highly attractive. Added to that are the many cultural, sports & entertainment attractions Phoenix has to offer.
Phoenix also has a growing retiree market. The same reasons that attract retirees to visit during the winter months cause many of them to decide to relocate here permanently. Phoenix has many adult-only communities providing active lifestyles for seniors, and it also has excellent medical facilities.
Not enough inventory to meet demand.
Put simply, there aren’t enough properties for sale to meet the demand of buyers. The number of active listings is 69.26% lower than last year*. As of March 31st, the demand for housing is up 12% above normal, while supply is down 78% below normal and 49% of all sales are over asking price**.
This lack of inventory is great for owners who list their homes for sale, as they are typically seeing multiple offers, many over asking price, and many waiving appraisal contingencies and repairs. For buyers, just the opposite is true. Low inventory can make it difficult to put in a winning bid on a home. Buyers should be prepared to offer well over asking price & waive any appraisal, loan or repair contingencies.
Contact The Donnelly Group Today
The housing market is cyclical and, as the old saying goes, “What goes up must come down.” However, if metro Phoenix continues to grow and inventory remains low, it’s likely that the housing market will continue to sizzle for the foreseeable future. If you’re thinking about selling your property to take advantage of this red hot market, give us a call at 480-792-9700. We will help you navigate the process.
**Source: The Cromford Report Greater Phoenix Market Update-March 2021