Market Update June 2021
The number of active homes for sale in Phoenix Metro is trending up but the supply shortage is so low that it will not make a huge difference for the rest of 2021. The number of listings in Phoenix Metro is currently at 9,552 which is up from 9,094 two months ago but down from 17,362 one year ago and 22,075 two years ago. Active listings are homes that are currently for sale that are not under contract. An active home goes under contract/pending when an offer is accepted. Phoenix is continuing to see a mass influx of migrants from other states such as California in large numbers causing serious affordability issues in the rental and sales market for Phoenicians. There are also large investment firms purchasing housing communities and homes to rent out. Investors want to get ahead of rising inflation in goods and services. The price of building materials such as lumber has also gone through the roof causing home prices to increase substantially. There needs to be an increase in 3D built homes, apartment complexes and manufactured homes to increase affordability in Arizona as wages have not kept up with the inflation the government and the Virus has created. I believe it will take at least another 18 months to repair the damage that was created in 2020. It is the best time to be a seller in Arizona and the worst time to be a buyer. Buyers who had the ability to purchase a home should have done so from 2008 after the crash until 2019 as things have drastically shifted for the worse in 2020 and 2021. If you are a buyer and attempting to purchase a home in 2021 below $500,000, your best option is to shotgun multiple offers site unseen and hope a seller accepts that offer. You would still have a 10 day inspection period to back out of the deal without losing your earnest money. Scheduling a showing to see a house to only wait behind 100 other potential buyers is a waste of time.
Here is an article I wrote on the cheapest states to purchase a home if you are looking to make a move: Cheapest States to Buy a Home
Here is another article I wrote on the cheapest cities to buy a home in Arizona: Click HERE
1. Laveen-South Phoenix Market Update
- Active homes for sale is currently at 46 where two years ago it was at 65.
- The number of days it can take for a home to go under contract can be as low as a few hours to a few weeks.
- Month’s supply is at 0.3 where as a balance market is between 4-6 months.
- Active listings cost $207/Square ft on average.
- Annual appreciation in Laveen-South Phoenix is close to 25% which means a house that was $300,000 one year ago is now closer to $375,000.
- Home builders are drawing names randomly and placing people on a waiting list to purchase homes.
- The average sales to list ratio is 103% which means nearly all homes are selling above the listed price. Agents continue to undervalue homes and selling them below what they could get for them either due to bad marketing, pricing strategy or pressure from buyer’s agent and investors. Some agents also try to double end deals through coming soon listings to receive a higher commission which causes homes to sell for less.
- Median price in Laveen-South Phoenix is around $400,000-$425,000.
2. Tolleson Market Update
- Active homes for sale is at 38 which is up from 28 three months ago but down from 67 a year ago.
- Month’s supply is at 0.3 where as a balanced market is between 4-6 months.
- Active listings cost $186/Square ft on average.
- Annual appreciation is around 31% compared to last year.
- Average list to sales ratio is 103% which means nearly all listings are selling above the listed price which means agents are undervaluing homes.
- The median price in Tolleson is around $330,000.
If you need help with anything, call me 480-779-8579 or email me at [email protected] with any questions. Good luck.