ArabicChinese (Simplified)EnglishFrenchGermanItalianRussianSpanish

Market Update

How Will Our Phoenix Market Close Out 2020?

Now is still a great time to both buy and sell in our real estate market.

2020 has been a wild year, to say the least, and it’s time for one last market snapshot before it ends. Before I get into the latest numbers, I want to thank all our clients, friends, and family for supporting the Kelly Cook Real Estate Group. Right now, there are about 10,000 active properties for sale in the Phoenix Metro area, and inventory stands at 1.4 months of supply. In other words, if no other homes came on the market, it would take 1.4 months to sell off all available listings. The good news is that roughly 7,300 homes came on the market during November. The bad news is that 8,200 homes came off the market, which means supply and demand continue to be pinched. The average days on market, meanwhile, is 38 days.
“With interest rates and supply this low, I predict a robust Arizona housing market in 2021.”
If you’re a seller, it’s a no-brainer that now is the time to sell. In the week leading up to the recording of this video, we sold four homes—each of which attracted multiple offers and sold for over asking price. Conditions may yet improve for sellers, but waiting to sell would mean trying to time the market. If you’re a buyer, you may remember that last month we talked about the three main reasons why now is still a good time to buy. To reiterate, interest rates are low, which means your buying power is high. With interest rates and supply this low, I predict a robust Arizona housing market in 2021. If you have any questions or are ready to buy or sell a home, don’t hesitate to reach out to me. I’d love to help you. Merry Christmas, happy Hanukkah, and happy holidays. We’ll see you in 2021!

What’s Happening in the Phoenix Real Estate Market?

M/div>

Although we may see a market correction in the next few years, it’s unlikely that it will happen in 2019. For the time being, our market remains extremely strong.
Looking to buy a home? Click here.
Looking to sell your home? Click here.

Today’s topic is a good one. We’re going to discuss where our real estate market is at this very moment in Greater Phoenix.

Here’s some perspective. The housing market moves in cycles, usually in 10- to 15- years at a time. It always has and it always will. When the market started to tip during the last housing cycle, it was in the 2nd quarter of 2007. Obviously, 2008 is when things got bad, but we were already in a declining market by that point.

Inventory is still low, and so are interest rates.

It’s been about 12 years since that point, so a correction is around the corner in the next few years. According to First America Financial Corporation, though, 2019 will be an even more robust year for sellers than 2018 was.

A big reason for this is the fact that more and more millennials are now forming families and becoming homeowners. Because this segment of the population is so large, it’s creating huge demand, which is great news for sellers.

Another reason is that we still have low inventory. Rates are low as well, and they’ve dipped back below 5% to 4.25% on average. That’s cheap money to borrow if you’re looking to buy. Down payment assistance programs are out there that will give you up to $15,000 for assistance as well.

What does this all mean for you? Well, we’re experts in selling residential real estate and we want you to know that we’re here to provide value for you. If you have any questions for us in the meantime about the market or about your personal situation, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.