Archives July 2021

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.