Median home price is $332,000 compared to $262,500 2 years ago.
Current interest rates are around 2.5-3%.
Homes between 200-400k in selling condition, priced correctly with great photographs are seeing multiple offers within 1 week and even as low as 24 hours.
New home builders are taking 12 months or more to build properties due to a labor shortage and the cost of materials going up. Slow new home builds has caused existing homes to rise in prices.
Massive buyer demand from out of state buyers, low supply and low interest rates has propelled the Phoenix real estate market to all time highs in 2020. The first half of 2020 saw less competition among buyers compared to the last half of 2020.
Month’s supply is at 1.3 where as it would take 4-6 months to see a balanced market where prices would come down.
Active listings for Maricopa and Pinal county are at 12,100 where as 2 years ago, they were at 21,600.
Buyers should look on the outskirts of Phoenix Metro to find more affordable homes such as in Buckeye, Casa Grande, Maricopa, San Tan Valley and Coolidge. Glendale, Sun City, El Mirage, Laveen, South Phoenix and Tolleson also have relatively more affordable homes. The most expensive, nicer and lower crime areas include Scottsdale, Gilbert, Chandler, Goodyear and Litchfield Park. Buckeye has really low crime and is one of the most affordable cities in Phoenix Metro due to it being a newly developed city.
The best negotiation tactics to beat out other buyers in a competitive environment are to offer cash, conventional loan, faster closing date, waiving inspection, waiving appraisal contingency and waiving seller concessions. Other ways to get a better deal are to purchase properties that been sitting on the market for a long time, fixer upper homes and newly back on market homes where sellers are frustrated and more eager to sell.
Do I see a downturn in 2021? No. The market may see a slight cool down due to unemployment, interest rates being raised and foreclosures but I do not see a crash in the foreseeable future due to high demand, low supply, slow new construction, low interest rates and high equity among sellers compared to 2008. Call or Text me at 480-779-8579 if you need help with anything.
By Seidy Lasker|2021-04-13T08:34:52+00:00December 9th, 2020|Uncategorized|Comments Off on Laveen-Phoenix Market Update December 2020!