Phoenix Housing Market End of Year Summary
A year in Review – Amy Gerrish, Realtor & Analyst
I ran a basic year over summary based on Jan – November (since December hasn’t quite finished yet).
Overall we are seeing slight growth in units sold over 2019. Sold units are up 4.12% YOY. Sold units saw a decline in the spring because of coronavirus, but made up for it in the fall/winter pushing sold units to end the year in positive growth.
New inventory on the other hand remained flat year over year. With same trend of lost listings in the spring and an increase in the late summer/fall. November 2020 listings were only up 7% (a -12% decrease from September), however demand was significantly higher at 29%.
With demand being so un-proportionately high compared to inventory in the late summer and fall, average sale price definitely increased 12.3%. In the first 90 days of 2020, the average sale price was $373,927 for 2000sf, in the past full 90 days the average sale price was $419,657 for 2000sf.
Heading into 2021 we will be seeing more of the same as long as interest rates remain low. An interest rate increase will result in a slowdown of buyer demand. A 12% increase in average sold price coupled with the slightest shift in increased interest rates in this market with affordability problems will see some sort of a demand slowdown. Another factor that could cause a slow down in demand will be another shift in our economy. We need to keep an eye on unemployment & job creation numbers more closely heading into 2021.
Phoenix Housing Market Bottom Line
Until any of those factors come into play (interest rates, economy, affordability cap) be prepared to charge into 2021 with high buyer demand and continue with this strong seller’s market.