Phoenix’s Real Estate Market Update for August 2020

The month of August brought the Phoenix real estate market a mixed bag of good news despite the ongoing pandemic. Nationally, people can now afford homes more than ever thanks to lower mortgage rates. The real estate market has noted a 10% increase in buying power across America, which means that it may be an ideal time to purchase a home in Phoenix, Arizona, due to the housing market’s favorable investment atmosphere.

Over the past 12 years, I have studied and specialized in helping people sell and buy houses in Phoenix. One of my favorite parts of the job is analyzing the numbers so that I can be able to offer the best level of service to my existing and future clients. That is why I have compiled this update of the real estate market in Phoenix to recap August.

What was the average sales price and how many homes sold?

To start, the average sales price for properties sold in August was $401,707. There were 9,227 homes sold during August, which is a 3.5% increase year over year. This is showing that we are definitely in a Seller’s market!

How many homes were listed and what was the average days on market?

Homes that were listed in August had an average days-on-market of 49 days. In August 2019, homes were remaining on the market roughly 58 days before being sold, which means we are seeing a 19.67% decrease in days on market this year.

Here’s the caveat for homebuyers – inventory is definitely decreasing. See all of the homes for sale here. Active listings during August went down by 20.3% compared to 2019. There were a total of 12,470 active listings during the month of August, but new listings shot up by 8.7% year over year with 10,682 new homes hitting the market.

How many homes went under contract?

The average sales price per home in August increased by 17.98% year over year, and the average price was $401,707. Real estate is the best bet when it comes to viable investments in life. They appreciate over time, which means the home you buy today at $400,000 could be worth much more in a few years.

There were 6,441 homes that went under contract last month. This figure has gone down by 25.6% from last year’s number. Lastly, the sales-to-list price ratio was 98.8%.  While this figure may seem like there is still some price flexibility in the market place, most listings are still selling at list price, if not over asking with multiple offers.  So, pricing your property correctly does still play a huge role in how many offers you receive so you can use the competitive market to your advantage. Let me know if you’d like to come up with a pricing strategy for your home so that you can maximize your profits during the transaction.

In Summary

A key thing to note is inventory may be low, but so are interest rates. If you’re a move-up buyer, meaning you currently own a home and are looking to get a bigger home, you probably have more equity in your investment than you realize. You may be able to sell your home and use that equity to pay off debt or use it as a down payment on a much larger home with a lower interest rate on the mortgage loan. And, if you’re worried about selling with nowhere to go – the market offers you a lot of flexibility to remain in your home while you look for your next home.  If you have not yet got into purchasing property, I am available to help you every step of the way. If you currently live in Phoenix or the surrounding areas and are looking for some guidance and strategy, contact me for a free property evaluation. Here is my number, 602-330-6813, or email me at brian@brianeastwood.com!