As we continue to alter our daily lives due to the current pandemic, the Phoenix area continues to thrive! Phoenix’s hot housing market is returning to pre-pandemic levels faster than most thought possible.
Beginning in April, when the nation saw lock downs take place, the Phoenix housing market experienced a 26.9% drop in sales. In May, only 6,860 homes sold in Phoenix versus 10,341 in May 2019. On May 15th, the stay at home order in Arizona was lifted. Realtors started to have socially distant showings complying with CDC regulations. As a result, closings from May to June saw an impressive 55% growth.
Even as the nation continues to learn more about COVID 19, home prices in Phoenix continue to rise as demand increases. Currently, there are more properties under contract than there are available. Considered to be a sellers market, homes are selling an average of 23% over asking price. Even the luxury market, homes priced over $1 million, are on the rise. Contracts for luxury homes are up 159%.
Pre-Pandemic Inventory Levels Return
As buyers continue to take advantage of low interest rates, the demand for homes in the Phoenix is at all a time high. And, as anyone learned during an Economics class, demand drives price increases. Inventory levels have returned to pre-pandemic “lows’. Currently, there are 2,061 homes available in the $200k – $300k range and 4,333 under contract. Moving up to the $300k – $400k range, there are 3,017 pending sales with 2,086 available properties.
According to Zillow.com, the home value index in Phoenix is $269,175, an increase of 8% year over year. The current medium price for a home in Phoenix comes in at $289,900.
Buying a home in Phoenix
As a newcomer looking to purchase a home in Phoenix, it is important to follow a few guidelines:
- Find and work with a professional realtor who knows the area. Let them know exactly what price range you are looking for. Be sure to include information on where you will be working to take your commute into consideration. A professional realtor will also be able to talk to you about schools, healthcare and other important aspects to consider when you purchase a home.
- GET PRE-APPROVED! Going into the home buying process with a pre-approved mortgage will increase your chances of closing on your Sun of the Valley dream home.
- Research, Research, Research! Again this is where working with a professional realtor will come in handy. They will be familiar with the area and find exactly what you are looking for.
Phoenix’s hot housing market can present challenges as a newcomer. However, with the right realtor, you’ll be settled in your new home in no time!