The Phoenix 2019 Annual Housing Market Report reflects very low inventory, we need to get more sellers, and builders are trying to keep up with the demand.
As you can see from this report, inventory has dropped 38%. That’s a remarkable drop in inventory. Inventory levels haven’t been this low since August 2005, according to the Cromford Report from which these reports are derived.
Buyers are lined up to buy homes in the Phoenix Metro Area putting upward pressure on prices. This report reflects all listings in Maricopa County, the 5th largest county in the US with a population of 4.4 million residents.
This next graph reflects how long it would take to sell the current inventory of residential properties, 1.3 months. That’s a fast moving market. The last time this type of market existed was in August 2012. The seasonal inventory ups and downs are not what most people expect, so read on for more explanations.
The Under Contract price per square foot for lisings has risen dramatically the lst Quarter of 2019. This is in all price ranges so if you are looking for something more specific, please contact me. Clearly the market has continued to improve since the recession felt in Phoenix during 2011.
It’s evident that the foreclosure market is a very small percentage of the total sales in the Phoenix Metro Area. In fact, less than 3% of our sales are distressed sales. Market recovery is evident when you compare 2011. Sales have just now reached the same totals as 2011, but not as many sales as in 2005.
Cash sales continue to be just over 20% of our total sales volume. As prices have risen, investors have slowed a bit. But we are still seeing homes that are purchsed for remodel and a quick sale in prices under $350,000.
Overall the market is in single digit appreciate and it’s still a good time to purchase real estate with interest rates remaining at historic lows. And it’s also a great time to sell with eager buyers waiting in the wings thanks to lower than normal inventory levels.
If you or someone you know are looking to purchase or sell real estate in the Phoenix Metro Area, please don’t hesitate to call! 480-822-8595
