(Published on - 1/29/2021 9:31:37 PM)
I had the distinct privilege of attending a Zoom meeting with Tina Tamboer, Senior Housing Analyst at the Cromford Report, providing real estate statistics, trends, and data services for the Phoenix Metropolitan Area. Some highlights:
The employment outlook for the valley illustrates the following industries to be dominant: 1) Manufacturing 2) Healthcare 3) Bioscience 4) Construction
Corporate profits rose 27.5% in the 3rd Quarter of 2020 and it could account for the healthier luxury home market we are experiencing. 63% of inbound home buyers earn in excess of $100,000 annually. $1 Million dollar plus listings under contract are up 69.7% over last year just in the first 27 days of January 2021.
We are underbuilding for our population growth. Our housing demand is 28% above normal, but our housing supply is 73 1/2% below normal. Demand may ease up gradually due to an affordability issue as buyers compete for the slim supply of available homes on the market. Supply needs to come up for affordability to be affected. Favorable interest rates give buyers more buying power and interest rates may be low throughout 2021.
When we look at listing inventory in January from another typical year, we should be in the neighborhood of 24,000 listings. We currently have in the neighborhood of 5,150 total listings available in the Arizona Regional Multiple Listing Service. Our new listings are about 15% down from this same month in 2020. The median agent days on market at time of contract is seven (7) days! Buyers agents have to jump quick to show a property and write that contract quickly to compete--don't ask for anything.
In one southeast valley zip code (85295), there were 8 properties on the market on January 25th and 87 properties under contract! Also known as INSANITY!!!
In the northeast valley in areas such as Scottsdale and Carefree, new homes are going for more per square foot than resale. Contrary to that, new homes are a better deal in the southeast valley as resale homes are going up at a sharper trajectory than new homes. For now considering southeast valley zip codes are among some of the most 'frenzied' in sales.
Buyers - be on the ready with financing, if any, lined up so as to make any escrow go seamlessly. Sellers - know where you are moving considering you will likely experience several offers right out of the gate.
California buyers? Call me. I love the valley of the sun and was born here. Safe showings.
Are you ready to sell? Please call me. This information illustrates the dire need for homes to sell.