Laveen Arizona Market Update March 2021
- The current market in Laveen and Phoenix is still a strong seller’s market with most homes between 200-500k that are in selling condition, priced right, marketed and shown well receiving multiple offers within a few days.
- Inventory of homes is down from 166 to 42 from exactly 2 years ago in Laveen
- Houses are selling at 100.21% of list price which means homes are still being undervalued when put on the market.
- The median price in Laveen is $350,000 which is up from $258,000 2 years ago.
- Month’s supply of homes is at 0.2 months where as a balanced market would be between 4-6 months.
- The price of building materials such as lumber has gone up considerably after covid due to manufacturing facilities being shut down which has played a role in rising home prices coupled with shortage of construction labor and a mass influx of migration from states such as California.
Tips for Buyers:
- Look at further out suburbs of Phoenix such as Buckeye, Casa Grande, Eloy, Maricopa, Coolidge etc.
- Move to states with lower demand and lower prices.
- Wait until inventory of homes increase from new construction and more sellers which may take a few years.
- Purchase a home and rent out rooms or purchase a multifamily and rent out other units.
- Preferably have strong financing and consider waiving seller concessions, inspections and appraisals.
- Look at back on market properties and for sale buy owners for less competition. Homes fresh on the market receive the most interest.
Tips for Sellers:
- Do not over remodel your property as the cost is not worth it in this market. If it’s not selling condition with major functions of the home working properly, I would consider getting a HELOC which is a loan on the equity of your home that you can use to bring your home back to selling condition. You can also sell it as is without repairing the home, however the chance of an appraisal being lower than the contract price is greater.
- Do not under price your home in this market. The conventional wisdom is to under price to create a bidding war, however in this market, I would rather list it at “market value” or higher to test the market.
- Consider requesting an appraisal waiver which would force the buyer to cover the spread between the appraisal and contract price or else risk losing their earnest money.
- Having all the leverage, I would advise not to waste money making repairs after the buyer’s inspection period especially for minor repairs. You should consider repairing major issues or offering a closing cost credit, however depending on the number of backup offers, you might not have to. You risk the buyer backing out but the time between the home going under contract and the inspection period is less than 14 days in this market so you would not be losing anything where as the buyer spent $500+ on an inspection.
- To learn how to sell your home for the highest price, click HERE.
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