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Market Update – Week of August 16, 2021

Over/Under List Price for Past 30 days for Single Family Detached Homes in North Phoenix, North Scottsdale, Anthem, Cave Creek, Carefree ($400k – $1million)

(301 closed sales July 16 – August 16, 2021)

Over List Price	51.83%
Under List Price	26.25%
At List Price	21.93%

According to my friends at First American Title, the median home sold last week was on the market for the following: (note: some areas can have greater fluctuation each week due to a low volume of transactions)

• Anthem – 35 days (up from 28) – price per foot = $293 (up from 282)
• Cave Creek – 21 days (dn from 28) – price per foot = $328 (up from 327)
• Carefree – 84 days (up from 81) – price per foot = $443 (dn from 448)
• Phoenix – 14 days (unchanged) – price per foot = $272 (up from $267)
• Scottsdale – 28 days (unchanged) – price per foot = $405 (dn from 406)

The median numbers above represent a midpoint but home condition, upgrades and lot size, lot location and views all have a strong influence on value and can vary greatly. Upgrades include updated kitchens, baths, paint color, flooring and outdoor space amenities which often have major influence on values as well.

What does this mean?

The most recent trends on inventory and demand are continuing. Although we had a slowdown in the inventory growth for homes under 500k last week, the growth came back up this week so there are definitely a few more options for buyers. However, the best homes in either condition or location are still selling very quickly while homes that are priced higher than their condition are staying on the market a bit longer. These properties may offer opportunities to purchase below asking price. Overall demand is still strong this summer but maybe not quite as frenzied as it has been for the first 5 or 6 months of the year. However, demand may increase again in the Fall as residents return from vacations and visitors begin to return as well. These factors may make it a good time to buy now prior to Fall.

Market Update – Week of August 9, 2021

The number of detached single-family homes on the market in the Valley:

• Home inventory increased again this week but at a slower pace coming in at 6,301 vs 6,233 a week ago – a 1% increase.
• Under $1 million inventory increased as well with 5,283 vs 5,228 a week ago – a 1.5% increase.
• Under $500k inventory decreased with 2,998 vs 3,022 a week ago – a .7% decrease

According to my friends at First American Title, the median home sold last week was on the market for the following: (note: some areas can have greater fluctuation each week due to a low volume of transactions)

• Anthem – 28 days (up from 21) – price per foot = $282 (up from 279)
• Cave Creek – 28 days (dn from 42) – price per foot = $327 (down from 342)
• Carefree – 81 days (up from 77) – price per foot = $448 (dn from 463)
• Phoenix – 14 days (unchanged) – price per foot = $267 (dn from $268)
• Scottsdale – 28 days (unchanged) – price per foot = $406 (up from 402)

The median numbers above represent a midpoint but home condition, upgrades and lot size, lot location and views all have a strong influence on value and can vary greatly. Upgrades include updated kitchens, baths, paint color, flooring and outdoor space amenities which often have major influence on values as well.

What does this mean?

There seemed to be a pause/slowdown in the inventory growth this week. There was also quite a bit of traffic at several open houses or home showings I attended this past weekend so it is still a seller’s market. Some of the homes were very likely going to get multiple offers and sell for over asking price. However, I was also able to help some clients get a really nice home for under asking price. The added inventory over the past few months has definitely helped buyers but really good homes will sell very quickly when priced strategically. The important thing is to be able to look at the data before making an offer or putting your home on the market to make sure the price is appropriate for you and your needs.

Market Update – Week of August 2, 2021

The number of detached single-family homes on the market in the Valley:

• Home inventory increased again this week coming in at 6,233 vs 6,135 a week ago – a 1.6% increase.
• Under $1 million inventory increased as well with 5,228 vs 5,098 a week ago – a 2.5% increase.
• Under $500k inventory also increased with 3,022 vs 2,943 a week ago – a 2.6% increase

According to my friends at First American Title, the median home sold last week was on the market for the following: (note: some areas can have greater fluctuation each week due to a low volume of transactions)

• Anthem – 21 days (up from 14) – price per foot = $279 (up from 276)
• Cave Creek – 42 days (up from 35) – price per foot = $342 (down from 349)
• Carefree – 77 days (up from 67) – price per foot = $463 (up from 429)
• Phoenix – 14 days (unchanged) – price per foot = $268 (down from $270)
• Scottsdale – 28 days (unchanged) – price per foot = $402 (down from 412)

The median numbers above represent a midpoint but home condition, upgrades and lot size, lot location and views all have a strong influence on value and can vary greatly. Upgrades include updated kitchens, baths, paint color, flooring and outdoor space amenities which often have major influence on values as well.

What does this mean?

The month of July added around a 13% increase in inventory providing some relief to potential buyers but the best homes are still selling very fast and often still requiring over asking price offers but the more dated or un-updated homes are starting to stay on the market longer – especially when trying to get top dollar so it is very important to price these types of homes accordingly when putting them on the market.

Real Estate Market Update – Week of July 26th

In addition to the usual information that I provide weekly, I did another analysis on the Over/Under List Price stats for homes in the North Valley (N Phoenix, N Scottsdale, Anthem, Cave Creek & Carefree).

Summary of the 193 homes that closed in this area from July 1 – July 25, 2021:

43 (22%) sold for under list price

44 (23%) sold for list price (included homes within $100 of list price)

106 (55%) sold for above list price

Of the homes that sold for:

Under list price – the median was $10k Under list price

Over list price – the median was $25k Over list price

Let me know if you would like to see the entire spreadsheet of transactions – I’d be happy to send it to you.

The number of detached single-family homes on the market in the Valley:

• Home inventory increased again this week coming in at 6,135 vs 6,008 a week ago – a 2.1% increase.
• Under $1 million inventory increased as well with 5,98 vs 4,972 a week ago – a 2.5% increase.
• Under $500k inventory also increased with 2,943 vs 2,885 a week ago – a 2% increase

According to my friends at First American Title, the median home sold last week was on the market for the following: (note: some areas can have greater fluctuation each week due to a low volume of transactions)

• Anthem – 14 days (down from 25) – price per foot = $276 (down from 293)
• Cave Creek – 35 days (down from 56) – price per foot = $349 (unchanged)
• Carefree – 67 days (up from 53) – price per foot = $429 (unchanged)
• Phoenix – 14 days (unchanged) – price per foot = $270 (up from $267)
• Scottsdale – 28 days (unchanged) – price per foot = $412 (up from 402)

The median numbers above represent a midpoint but home condition, upgrades and lot size, lot location and views all have a strong influence on value and can vary greatly. Upgrades include updated kitchens, baths, paint color, flooring and outdoor space amenities which often have major influence on values as well.

What does this mean?

It’s still a strong sellers market but buyers do have a few more choices. However, buyers still must act very quickly to get the best homes. Homes in below average condition that are priced too high without regard to the below average condition are remaining on the market for longer periods of time. I’ve seen homes in this condition remain on the market for several weeks even though the neighborhood or area market is still very hot. Even homes that have “dated” finishes have had to reduce asking prices in many cases.

Market Update – Week of July 19th

The number of detached single-family homes on the market in the Valley:

• Home inventory increased again this week coming in at 6,008 vs 5,839 a week ago – a 2.8% increase.
• Under $1 million inventory increased as well with 4,972 vs 4,804 a week ago – a 3.5% increase.
• Under $500k inventory also increased with 2,885 vs 2,787 a week ago – a 3.5% increase

According to my friends at First American Title, the median home sold last week was on the market for the following:

• Anthem – 25 days (up from 21) – price per foot = $293 (up from 282)
• Cave Creek – 56 days (up from 49) – price per foot = $349 (Down from 351)
• Carefree – 53 days (up from 49) – price per foot = $429 (up from 425)
• Phoenix – 14 days – price per foot = $267 (down from $269)
• Scottsdale – 28 days (unchanged) – price per foot = $402 (unchanged)

The median numbers above represent a midpoint but home condition, upgrades and lot size, lot location and views all have a strong influence on value and can vary greatly. Upgrades include updated kitchens, baths, paint color, flooring and outdoor space amenities which often have major influence on values as well.

What does this mean?

Overall, home prices are starting to stabilize as can be seen from the stats above but we’ll need to continue to watch the trends going forward. Homes under $400k are still selling quickly but location and condition are starting to be a factor in just how quickly. The number of multiple offers on individual homes seem to be going down but the best properties are still getting multiple offers.

If you are planning to sell a home in below average condition soon, it may be better to list it sooner than later as the inventory continues to grow and buyers have more options in the market. If your home is in superior condition, your home will almost always gain more interest and attention even as the inventory increases.

Market Update – Week of July 12th

The number of detached single-family homes on the market in the Valley:

• As expected, available homes increased again this week coming in at 5,839 vs 5,462 a week ago – a 6.9% increase – larger due to less activity last week during the holiday.
• Under $1 million inventory increased as well with 4,804 vs 4,466 a week ago – a 7.5% increase.
• Under $500k inventory also increased with 2,787 vs 2,607 a week ago – a 6.9% increase

According to my friends at First American Title, the median home sold last week was on the market for the following:

• Anthem – 21 days (up from 14) – price per foot = $282 (up from 275)
• Cave Creek – 49 days (up from 35) – price per foot = $351 (Up from 326)
• Carefree – 49 days (up from 45) – price per foot = $425 (from 418)
• Phoenix – 14 days – price per foot = $269 (both unchanged)
• Scottsdale – 28 days (down from 35) – price per foot = $402 (up from 398)

The median numbers above represent a midpoint but home condition, upgrades and lot size, lot location and views all have a strong influence on value and can vary greatly. Upgrades include updated kitchens, baths, paint color, flooring and outdoor space amenities which often have major influence on values as well.

What does this mean?

Homes are still selling very quickly with the best homes continuing to sell within a few days but below average homes are starting to take longer to sell. Although the inventory is continuing to grow, we are still far from what our “normal” inventory level is in the valley and multiple offers are still most common. However, as we go forward, there will likely be a larger gap in pricing between the best homes and the below average homes (less updated and/or less popular lot locations). This gap will allow investors/flippers to have more room to work with to improve homes and still make a profit. A large percentage of homes I see need some kind of updating – not to make them livable but to make them more “current.” An updated home almost always brings in more interest from buyers and a higher sales amount for sellers.

Hope you had a great Independence Day Celebration!

Market Update – Week of July 5th

The number of detached single-family homes on the market in the Valley:

• Remained flat this week coming in at 5,462 vs 5,499 a week ago – almost no change.
• Under $1 million inventory was basically flat as well with 4,466 vs 4,489 a week ago.
• Under $500k inventory was also flat with 2,607 vs 2,579 a week ago.

The biggest influence on the numbers this week is likely the July 4^th weekend as most people celebrated Independence Day and didn’t spend much time buying or listing homes.

According to my friends at First American Title, the median home sold last week was on the market for the following:

• Anthem – 14 days – price per foot = $275
• Cave Creek – 35 days – price per foot = $326
• Carefree – 46 days – price per foot = $418
• Phoenix – 14 days – price per foot = $269
• Scottsdale – 35 days – price per foot = $398

The median numbers above represent a midpoint but home condition, upgrades and lot size, lot location and views all have a strong influence on value and can vary greatly. Upgrades include updated kitchens, baths, paint color, flooring and outdoor space amenities which often have major influence on values as well.

What does this mean?

No big changes this week – As home inventory continues to improve, buyers are starting to have a few more choices but will still have to act quickly when a great home becomes available.

Market Update – Week of June 21st
The number of detached single-family homes on the market in the Valley:

• Grew slightly again this week coming in at 5,273 vs 5,082 a week ago – a 3.7% increase.
• Homes under $1 million grew by around 4.1% while homes under $500k grew by more than 2.7%.
• Since the beginning of April, the inventory has been continuing to climb most weeks and inventory is now up over 31% since April 5^th.

Even with this continued growth of inventory, buying demand still remains high and especially for homes in superior condition or that have other standout features like views, updated backyard/outdoor space and/or the most recent interior updates. I’ve also seen a few more homes stay on the market a bit longer because they are likely over-priced for their condition or lack of updates. These homes that have dated or poorly done finishes and/or on less desirable lots are likely to sell for less than the list price unless already priced on the lower end of their neighborhood. However, this has only been around 20% of the market recently. More than half of the recent homes sales have sold for more than list price.

What does this mean?
Because demand for homes is still so strong, the best homes (because of location/views or updates) will continue to sell very quickly and often above list price. However, buyers may find that if they are willing to make some improvements on a home with some correctable faults, it may be the best way to get to your end result of owning a home that is best suited for your specific needs.

Market Update – Week of June 14th – Dale Samar – Realtor

The number of detached single-family homes on the market in the Valley:

• Grew slightly again this week coming in at 5,082 vs 4,813 a week ago – a 5.5% increase.
• Homes under $1 million grew by almost 6.8% while homes under $500k grew by more than 6.4%.
• Since the beginning of April, the inventory has been continuing to climb most weeks and inventory is now up about 26% since April 5^th.

Buying demand is still high and I’ve seen this first-hand with a few properties over the weekend that sold for well above asking price. These homes were in the $800k – $1.5 million range. Some homes with accepted contracts may adjust prices after inspection or not go any further at all depending on the terms of the offer but it does show that demand remains high even with additional homes coming on the market.

During the past 30 days May 14 – June 14 within my most prevalent North Valley area, there were 239 closed sales within in the $500k – $1 million range: 61% sold for over list price, 21% sold for less than list price and 18% sold for list price. I always provide a more detailed look at the homes within your target area/price point when you are ready to make an offer ( or price your home) so you can base the offer on the best data available.

Why are more homes coming on the market?

There are a few reasons for this recent increase in inventory:

• There is pent up demand on the selling side that is starting to show up in the market. There was a lot of uncertainty in the world over the past 15 months and that made people decide to stay in place longer than usual.
• Covid concerns have eased so more people are comfortable putting their homes on the market and having people come into their homes for showings.
• It is still a sellers-market which makes it easier to sell a non-updated home and if someone is considering a move. It is still a great time to sell. Many people would rather sell a dated home and move to a more updated home than go through the process of updating their currently home.
• Work-at-home trends are continuing to show up in the needs of homeowners and many have found they need more than what their current home offers – time to sell.

What does this mean?

Because demand for homes is still so strong, the best homes (because of location/views or updates) will continue to sell very quickly and often above list price. However, homes that are dated without the most premium lots or location may stay on the market a little longer allowing you to purchase without as many competitive offers being available to the sellers – but even these homes will still sell relatively quickly because of the strong demand.

If you are willing to paint and have some cosmetic updates including flooring, counter tops and even cabinets updated after you purchase, you may be able to build in some additional equity into your new home.

Feel free to let me know if you have any questions about updating either your current home or a potential purchase. My team includes my very talented wife, Michelle, of Mongrel Design Interiors www.mongreldesign.net . Together, we can make any home your perfect home!

Have a great week!