July 2020 Market Update
Inventory, inventory, inventory! Where is our inventory?! Active listings in July’s Greater Phoenix real estate market stand at 8,788, down 43.2% year over year, and the median sales price is now $305,000, up 9.3% year over year. Historically low inventory has been the story for 2020.
While prices are up, interest rates hit another, all-time record low. Thirty-year money stands at just 3.03% with .8 points. (Freddie Mac, July 9, 2020)
Many new buyers have entered the market, however, there has not been a corresponding increase in inventory. Homes under $300,000 are particularly hard to find, and this has produced a plethora of multiple offers in that price range. In speaking to one of our agents recently, she said that she has advised her buyers that if they see a home at 8:00 a.m., be prepared to offer immediately. Sometimes even that is not good enough. She said they have been outbid, or beaten to offer acceptance, over a dozen times in the past month.
On the other hand, new listings over $500,000 spiked in July, up 20% year over year, so there is available inventory in that range. (Cromford Report, July 2020)
Half of current contracts under $400,000 were on the market for less than 8 days prior to contract acceptance, and 28% of all sales in July so far have closed over asking price. These numbers suggest that successful buyers need to come prepared to immediately do business, as this is definitely a seller’s market.
As always, if you are buying or selling, please work with a trusted real estate agent and loan officer. They can help you make the best decision.