Phoenix real estate has gained national interest as a top real estate hotspot. Despite global pivots, Phoenix real estate has continued to thrive. Therefore it is no surprise that more people are looking for the latest Phoenix real estate news.
In order to make the right real estate investments, you need to stay on top of the ever-changing market! With our recap, you can leverage the latest real estate trends to make more profitable investments.
We know how important it is to stay in the loop. To make your real estate investing easier, we collected the top stories, new records, and need-to-know Phoenix real estate news.
2020, A Record-Breaking Year In Phoenix Real Estate
2020 couldn’t stop the growth of the Phoenix real estate market. One of the biggest pieces of Phoenix real estate news was a slew of new records set. Despite the pandemic, 2020 was the record-setting year for Phoenix! The Cromford Report collected the new records and extremes we saw in real estate this year, with several being set in the Q4.
The New Phoenix real estate records for 2020 were:
- Highest ever active listings $/SF: $284.97
- Highest ever pending listings $/SF $217.37
- Highest ever monthly sales $/SF $212.64
- Highest ever annual sales $/SF $193.89
- Highest ever listing success rate 91.4%
- Highest ever average price for monthly sales: $435,793
- Highest ever average price for annual sales: $394,526
- Highest ever median price for monthly sales: $335,000
- Highest ever average sq. ft. for monthly sales: 2,075
- Highest ever average sq. ft. for annual sales: 2,035
Additioanlly, The S&P / Case-Shiller® Home Price Index® ranked Phoenix is one of the top-performing cities in the nation. The year over year comparisons were:
- Phoenix 12.7%
- San Diego 11.6%
- Cleveland 9.5%
The national index increased by 8.4% over the 12 months. With low inventory plaguing the market, demand only heating up, a strong seller’s market has emerged. 2021 is predicted to be another year full of new records!
National Recap: Owning A Home More Affordable Than Renting In Most Of US Market
ATTOM Data Solutions, released its 2021 Rental Affordability Report, which shows that owning a median-priced three-bedroom home is more affordable than renting a three-bedroom property in 63%, or 572 of the 915 U.S. counties analyzed for the report.
Median home prices have increased more than average rents over the past year in 83% of those counties. The most populous counties where home prices are rising faster are Los Angeles County, CA; Cook County (Chicago), IL; Harris County (Houston), TX; Maricopa County (Phoenix), AZ and San Diego County, CA.
Owning a home is a far better investment than renting in Phoenix, however, finding a home is extremely difficult with the state of inventory. In January, Single family detached home available supply is already recorded at -58% compared to last year, and has 37% more listings under contract than compared to last year.
There are currently 5,422 active listings on ARMLS located in Greater Phoenix and not in UCB or CCBS status. There are 5,556 broker’s offices in the ARMLS database. Currently, for every active listing, there are 8 ARMLS members or less than 1 listing per office.
Asking Prices Rose 27% In Past Year
The average price per sq. ft. of active listings is a leading indicator of sales price movement. Asking price is a great way to judge how sellers are viewing the current market. More expensive homes can stay on the market for longer and can skew the average. With inventory at an all-time low, and all 17 cities in Greater Phoenix favoring sellers, asking price can be a great indication of how they view the current market.
The Cromford Report recorded an average of $330.64 per sq. ft. across Greater Phoenix, using active listings that are not in UCB or CCBS status. This is up from $260.52 from 2020. This means asking prices have inflated by 27% in the last 12 months.
For listings under $500,000, then the average price has risen from $161.56 to $187.50 per sq. ft., an increase of only 16%. For listings over $500,000, the asking price per sq ft moved from $341.11 to $412.08, a rise of 21%.
Asking prices have risen rapidly since last year, with major increases happening after June. With homes under $500,000 losing share as the market struggles with an inventory shortage. Homes over $500,000 have gained a larger share in the past year. Home inventory in the lower price ranges has dropped significantly in the past year compared to the other sectors.
The lack of supply is giving sellers the upper hand. Many homes never make it to active status and are being sold before they are listed, or sold while they are still in “Coming Soon” status.
January Sets Record-Breaking Dollar Volume
2021 is looking like a great year for real estate! The Cromford Report reported that January had already broken two records in Phoenix real estate. January 2021 set a new record for dollar volume, and the highest ever contract ratio.
In 2021 the number is $3.1 billion, an increase of 35%, when compared to the previous record January Dollar Volume which was $2.3 billion, set in 2020. The main constraint is the lack of supply, as each week sets a new record for lowest available amount of homes. Those selling are compensated for by the increase in average price per transaction.
Additionally, the contract ratio has hit one of the highest numbers in all time! Contract Ratio, the number of homes under contract with the number of homes available for sale (without a contract). Over 60 represents a hot market and over 100 a feeding frenzy.
The Contact Ratio for Greater Phoenix (all dwelling types) on February 1, 2021 stands at 239. Last year we saw 89. The previous record high was 174, set in December 2020. For the market below $500,000, the contract ratio is over 300.
Inventory can’t keep up with the hungry market, and Home Price appreciation is expected to skyrocket this upcoming year. Demand continues to soar, and dollar volume with it.
Phoenix Real Estate News Recap
Real estate is continuing to thrive! With national and local real estate records being set, Phoenix will continue to shine in the spotlight. Using the top Phoenix real estate news, you can make smarter investments in 2021.
The Phoenix Real Estate News You Need For 2021:
- 2020 A Record Breaking Year In Phoenix Real Estate: One of the top pieces of Phoenix real estate news, was its record-breaking year. It was a great year of rising home prices, minimal days on market, and successfully closed listings!
- Owning A Home More Affordable Than Renting In Most Of The US Market: Owning a 3 bedroom home is more affordable than renting a 3 bedroom home. Inventory for homes remains tight, so renting may be the go-to pick for most investors!
- Asking Prices Rose 27% In Past Year: The Cromford Report recorded an average of $330.64 per sq. ft. across Greater Phoenix, using active listings that are not in UCB or CCBS status. This is up from $260.52 from 2020. This means asking prices have inflated by 27% in the last 12 months.
- January Sets Record-Breaking Dollar Volume: January 2021 set a new record for dollar volume, and the highest ever contract ratio. Phoenix’s real estate market is on the edge of a feeding frenzy for homes.
How will you use the latest Phoenix real estate news for your investments?
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