At the end of 2020 and towards the new year, purchase prices for single-family homes in Greater Phoenix have reached record high numbers, along with monthly rental rates for single-family homes.
Even before the onset of the pandemic, there has been a strong demand for single-family resale homes. According to a recent report from the Arizona Regional Multiple Listing Services (ARMLS), single-family resale homes were the most sought-after residential product in Greater Phoenix in terms of number of sales.
Quick sales
In September 2020, many properties only stayed on the market for a very brief period. Compared to September 2019, data showed a 92% increase in the number of single-family resale homes that stayed on the market for only a single day. Additionally, the number of homes that stayed on the market for five days or less in September 2020 increased by 85% compared to 2019.
Limited supply
When considering the estimated supply of inventory, it’s better to think in terms of days of supply rather than months of supply available. As of October 2020, the estimated months of supply overall was less than one month.
Active listings below $350k had a 12-day supply last October, while listings ranging from $350k to $500k had an 18-day supply. For many real estate agents, the conventional belief is that a six-month inventory supply was indicative of an equilibrium between a buyer’s and seller’s market, which means neither group had a market advantage.
Record-high purchase prices
In September 2020, average purchase prices for single-family resale homes in Greater Phoenix reached $362k – a record high that was $5,000 higher compared to August 2020 and $42k more compared to January 2020. Data shows that the median purchase price year-over-year in 2020 increased by 12% — the highest year-over-year increase in over seven years, which is impressive given the ongoing pandemic and the high unemployment rates.
Increased listings in the third quarter of 2020
There were more home sellers who listed their homes in the third quarter compared to the first and second quarters of 2020. This is of course an unconventional seasonal pattern, but 2020 wasn’t a normal year. There were nearly 22k new listings during the third quarter compared to 20k in the first quarter and 18k in the second quarter. As for sales, there were over 20k sales in the third quarter of 2020 compared to 15k in the first quarter and 16k in the second quarter.
Although the country is still currently dealing with the effects of the COVID-19 pandemic and the high unemployment rate, the strong demand for single-family homes in Greater Phoenix has led to record-high purchase prices and monthly rents.
If you’re on the market for a new home and you come across an ideal property, it’s best to act swiftly.
Searching for the finest Arizona real estate options? Work with the best real estate agent in Arizona by getting in touch with Aeris House Properties today. Call 602.671.2343, or send us an email at info(at)aerishouse(dotted)com.