Phoenix Real Estate Report

phoenix real estate market update1. How fast are homes selling? Average number of days on market for homes sold is 59 (down 8 from last year)
2. How many homes are for sale? We currently have 15,108 properties for sale (down 24.1% from last year)
3. What is the average sales price? Homes around the valley are selling for $362,060 (up 10.4% from last year)

December’s supply was down 7.2% from December 2018 (measured by 5,746 homes listed for sale last month) and December’s demand was up 20.7% from December 2018 (measured by 7,797 homes sold last month). In the last 12 months, average home values increased over 10% and our current market absorption rate is only 1.85 months (the lower the number, the fewer number of homes for sale) – a drop of 25% in the past year.

What is going on? There is no denying 2019 exceeded everyone’s expectations and went down as the year with the 4th highest number of homes sold, only falling short to 2004, 2005 and 2011 – each of which had an extraordinary story: starting to get crazy, completely crazy and capitalizing on crazy. Not only did we see an increase in sales volume in 2019, we saw continued growth in the average sales price. When we multiply the 4th best sales volume with the average sales price of 2019, we achieve the highest gross dollar volume in our history. Interestingly, the average $/SQFT is still below the 2006 peak but in 2020 the average $/SQFT might topple that peak.

What can we expect? As we move into 2020, there is no more important metric than how supply relates to demand. We’re coming out hot, characterized by above normal demand and extremely low supply. The lack of supply can only be described as shocking: a 24% decline since this time last year to reach the lowest level since August 2005. This to satisfy a population that has grown more than 20% since 2005. Anyone who thinks this severe shortage will not result in a significant rise in prices is going to be surprised. Supply remains under half of what is needed for a balanced market. Phoenix is currently the strongest large-city housing market in the USA and this is fueled by inter-state population movements. Retirees are a big part of that but so are people moving here from California and other Western states for work and lower cost of living. Demand is likely to remain healthy despite rising prices.

Interested in getting multiple competitive offers to buy your house? My new platform Offer Nerd is the only site you need to request numerous offers from institutions competing to buy your home. Simply submit your address, upload property photos (or I can take them for you at no cost) and in a few days I will have obtained several competitive written offers from companies looking to buy your house. I’ll be your guide throughout the process and if none of the offers make sense for you, there is no obligation to sell. I’ll even include my realistic selling price if you were to take your home to market rather than accepting an institutional offer.

Data from ARMLS® COPYRIGHT 2020.

28455 N 67TH DR, Peoria

* SOLD FOR 97.9% OF LIST PRICE * Highly UPGRADED & CUSTOMIZED Camelot Home in gated community awaits proud new owner! Expanded floorplan provides 4090sqft living space with 3 bed, 2 full bath, 2 half bath, private office, bonus room w/wet bar, professional gym & 5 car garage (1100sqft). Endless possibilities! Entertain fabulously in huge open kitchen w/island, enjoy quality time in pool & BBQing, play games in bonus room w/wet bar, retreat to private courtyard with gas firepit, relax in master jetted tub, dual head shower or outdoor heated spa. More free time & less to worry about in 2013 build, save time w/easy maintenance yard w/artificial turf front & back, save money with newer AC units & added insulation.

Gated subdivision at Canyon’s Edge Camelot Home for sale, marketed by Sonoran Mountain Ranch Realtor Andrew Robb.

Listing Price: $699,000
MLS #: 5964343
Address: 28455 N 67TH DR
City: Peoria
State: AZ
ZIP: 85383
Home Size: 4,090
Lot Size: 12,150
Bedrooms: 3
Bathrooms: 4
Garages: 5
Pool: Y
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Freon Phase-Out

end of freonYou probably recognize R22 by its common name: Freon. This refrigerant has been used in households for over 60 years to allow our air conditioners to cool our homes. During the 1970s, scientists discovered a link between hydro-chlorofluorocarbons (HCFCs) and depletion of the Earth’s ozone layer. With this link began the phase out of R22, an HCFC product, in 2010. R22 is an HCFC refrigerant that use gases to produce cool air by compressing warm air sources into liquid through HVAC coils. Freon has been an industry standard in refrigerants since the 1950s due to its efficiency.

How will this affect homeowners?
Although production of R22 will cease, there is expected to be plenty available and approved for use through December 31, 2029. Between 2020 and 2029, servicing systems with R22 will rely solely on recycled or stockpiled quantities. Homeowners are not required to stop using R22 air conditioners, nor are they required to replace existing equipment. However, homeowners should keep in mind that as supplies of R22 becomes limited over time, they may experience an increase in prices.

Phaseout dates to know:
Under the Clean Air Act of 1990, the U.S. began to outline a phase out for the use of R22 that would unfold slowly over the course of 20 years.
January 1, 2020 – there will be a ban on production and import of R22. Service of product will rely on stockpile.
January 1, 2030 – there will be a ban on remaining stockpile and import of all HCFCs.

What can homeowners do now?
The phase-out of R22 has been lengthy to allow homeowners to replace their air conditioner as they naturally age, and replace them with new energy-efficient equipment that uses EPA-approved
refrigerants, such as R410A which is a non-ozone-depleting refrigerant alternative refrigerant. It is flourine-based and contains no chlorine. R410A is also noncorrosive, nonflammable, and neutral to the environment. It is manufactured and sold under many names such as, PURON®, GENTRON AZ-20®, and SUVA®.

Purchasing a home warranty plan for the property is likely the most cost effective way to deal with the R22 Freon phase-out and conversion to R410a that we are facing. It can save you thousands when entire systems need to be replaced.

19418 N 86TH DR, Peoria

* SOLD FOR 98% OF ASKING * Rare opportunity to live behind the gates inside Vista Pinnacle at Westbrook Village! Great room floor plan with 2 bedrooms, 2 large bathrooms (each with separate shower & tub), highly sought-after 3-car garage with cabinets, all on an oversized corner lot! The bright sunny kitchen features an island, flat cooktop, wall oven & microwave, with spacious eat-in area. Impressive gas fireplace in great room, integrated dining area & dry bar make for splendid entertaining. Gigantic hobby room has window & tile floor, plus reconfigured laundry area inside home – not in garage! Extended covered back patio with gas stub for BBQ to enjoy private large back & side yard. Added bonus: new AC & exterior painted in the past year. Plus enjoy community pool, spa, tennis, pickleball, fitness & more!

Gated subdivision Westbrook Village home for sale, marketed by Westbrook Village Realtor Andrew Robb.

Listing Price: $350,000
MLS #: 5949798
Address: 19418 N 86TH DR
City: Peoria
State: AZ
ZIP: 85382
Home Size: 2,326
Lot Size: 10,456
Bedrooms: 2
Bathrooms: 2
Garages: 3
Pool: N
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3809 N 424TH AVE, Tonopah

* SOLD FOR 98.8% OF ASKING * Incredible home on 5 flat acres with mountain views, 1500sqft workshop (30’x50′ with electric & garage door), 3-car covered parking & OWNED SOLAR with new 5-year warranty. Exterior & interior just painted, 3 solar tubes for lots of natural light, new roof in 2010, open kitchen with island & storage, roll-out shelves & breakfast nook, laminate floor throughout, spacious family room & dining room, master bedroom walk-in closet with custom built-in, separate shower & jetted tub. Huge covered patio overlooks grass & very large pond with relaxing water feature, gazebo structure for cooking, fully fenced yard perimeter, convenient RV electric hook-up & prewired for generator, plus separate exterior storage shed, 7 hose taps around property & drip/sprinkler system.

Tonopah home for sale, marketed by RE/MAX Realtor Andrew Robb.

Listing Price: $249,900
MLS #: 5945742
Address: 3809 N 424TH AVE
City: Tonopah
State: AZ
ZIP: 85354
Home Size: 1,750
Lot Size: 217,800
Bedrooms: 3
Bathrooms: 2
Garages: 6
Pool: N
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RE/MAX Fine Properties
21000 N Pima Rd, Suite 100, Scottsdale AZ 85255