February Real Estate Market Update, Scottsdale Arizona + Metro Phoenix Areas
Arizona is the place to be and people are moving here in groves! The market is not slowing down, so waiting to buy will cost you…especially once interest rates rise. Sellers, now is the time to get top dollar!
SALES PRICES: We saw a new record high with a year over year increase of 23%.
ANNUAL APPRECIATION: This is hard to believe, but we are still seeing a 27% appreciation rate!! This is measured using a monthly average price/sf.
CLOSINGS OVER LIST PRICE: This is something to note! We have seen a change, and now closings over list price is rising again. It peaked in June ’21 and then slowly declined for the next 6 months. Currently, we are seeing 43% of all homes being sold at OVER list price! The price point with the highest percentage (51%) of sales over list price is $300-400k.
HIGH TRANSACTION VOLUME: We have a fairly consistent theme here, apart from 2020, this was the highest volume of any December!
SELLERS MARKET: The entire Valley remains a SELLER MARKET. As of today, the Cromford Market Index (CMI) is 450 and rapidly trending even further towards sellers. It would appear to me that we are going to see a repeat of the Spring ’21 season. A balanced market of supply vrs demand is a CMI of 100.
INVENTORY SHORTAGE: I don’t recall ever seeing less than one month of inventory. For example, the entire city of Scottsdale with a population of over 250k, has only 317 single-family homes available for sale.
NEW CONTRACTS: The amount of new contracts this past week is more than that of ’21. Even with extremely low supply, contracts keep being written! With this, sales volume will remain strong in coming months.
INTENDED USE: This is very insightful… in December, the amount of sales for primary residences fell almost 19% from a year earlier, while the amount of sales for homes intended to become rentals, was up almost 30%. Investors are very aggressive right now in purchasing homes.
BOTTOM LINE: With EXTREMELY low inventory and solid buyer demand, we have become a white-hot market again that heavily favors the sellers. This Spring season could easily mirror that of ’21 and we should expect a continuation of rising prices, high appreciation percentages, and many multiple offers.
If you are thinking of buying or selling, call me first, as I can help you navigate this fast paced, ever changing real estate market. Reach out anytime with questions; I am always happy to help and look forward to chatting anytime!