Lorraine Ryall
Finally, the summer is over and the outdoors becomes ours again, this is why we live in Arizona, for the other eight months of the year. As we head into fall, we become the envy of those bracing for winter storms, and with cooler temperatures come our annual flock of snowbirds, ready to relax and stay warm in our perfect winter weather.
While spring is still the highest season for buying and selling in Arizona with the peak month in May, we really don’t see a drastic decline in the fall and winter that you see in other states. Plenty of residents will wait until after the hot summer months to make their move. Arizona is still one of the top destinations for second home buyers and not just the Canadians, we are seeing more buyers from within the U.S. and especially California.
AN UNBALANCED MARKET
The inventory of homes for sale in the Phoenix area is the lowest we have seen since 2005, and with demand continuing to increase, the market remains very unbalanced. We are seeing more multiple offers and homes being sold before they are listed. I sold two of my listings this month to buyers driving by and seeing the Coming Soon signs.
The market is driven by supply and demand, and our unbalanced market is keeping us in a very strong seller’s market heading into the winter season. There is twice as much demand as there is supply, with October inventory down 39 percent, September sales down one percent, and the median sales price has increased 13.5 percent year-over-year.
Supply 53.1
Demand 106.7
| Inventory | Sales | Median Sales Price | |
| 2017 | 1159 | 816 | $228,000 |
| 2018 | 1089 | 794 | $251,000 |
| 2019 | 784 | 754 | $285,000 |
THE CHART BELOW IS THE CROMFORD INDEX WHICH REPRESENTS THE BALANCE OF SUPPLY AND DEMAND. 100 IS A BALANCED MARKET
FOR THE SELLER
If you are thinking of selling and hate the thought of having buyers coming through your home, now is a great time to sell. With homes being snapped up so quickly, especially in the price range under $400K, that means less time on the market and having buyers walking through. We still have very low interest rates, which is pushing buyers to purchase now and lock in their low interest rate.
If you are considering selling your home, you can get a free home estimate at InstantHomeValueAZ.com, or contact me directly for a free no obligation market analysis.
FOR THE BUYER
Despite expectations that mortgage rates would increase this year, rates are still very low and it’s a great time to lock in the low rate. If the spread between supply and demand remains where it is today, buying in the spring could be a lot harder with more buyers to compete with, and more expensive as the median sales price continues to increase.
Looking on sites like Zillow.com and Trulia.com are a great way to start your search. However, it can get very frustrating as many of the homes that show as active are actually under contract. In a hot market like we are in today, you have to be one of the first buyers to see a home and put in your offer. If you wait a day or two, chances are it will be gone.
If you are ready to buy, the best way to move forward is to contact a local Realtor and get set up on an automatic search, then any homes that meet your criteria will be emailed to you as soon as they are listed, so you can be one of the first to see it and you won’t miss out on anymore homes. If you would like to be set up on an automatic search, please contact me directly and I can set you up right away.
For more information on current market conditions, buying or selling a home, or a free home valuation, please feel free to contact me directly. Call (602) 571-6799, or visit my website at Homes2SellAZ.com.