Phoenix Real Estate Report

phoenix real estate market update
1. How fast are homes selling? Average number of days on market for homes sold is 45 (down 12 from last year)
2. How many homes are for sale? We currently have 11,313 properties for sale (down 27.3% from last year)
3. What is the average sales price? Homes around the valley are selling for $410,957 (up 22.5% from last year)

September’s supply was up 18.9% from September 2019 (with 11,022 homes listed for sale last month) and September’s demand was up 20.3% from September 2019 (with 9,654 homes sold last month). Average home values increased over 22% in the last year and our current market absorption rate is only 1.39 months, which is down from 1.95 months at this time last year. Absorption is an important metric that indicates what type of market we are in: under 3 months supply means a seller’s market, between 3 and 5 months means a balanced market, and over 5 months means a buyer’s market. Clearly, this remains a very strong seller’s market.

What is going on? With September in the books, another set of monthly records are broken: the highest median sales price ever reported, the highest average sales price ever reported and the highest sales volume for any September in our history. And with the high number of properties currently under contract, October will not disappoint. Our market is not only primed for the best October in our history, but also for a strong finish to the fourth quarter. The deficit in year-over-year sales volume in April and May impacted us, but this anomaly will most likely be fully erased by the end of October. When our final sales figures for the year are reported in January, the 2020 real estate market will have surpassed everyone’s expectations.

What can we expect? Less institutional buying, more out-of-state buyers, more Canadian sellers and new home construction struggling to keep pace with demand. Purchases for institutional buyers (such as hedge funds) accounted for 7.1% of September 2019 purchases but only 2.4% this year. With fewer purchases by institutions this September, more traditional buyers were able to find a home. In September of this year, 16% of all total buyers were from out of state, with the highest percentage coming from California, followed by Washington and Illinois. On a less positive note, Canadians are selling: in 2011 as our market bottomed, Canadian buyers accounted for nearly 6% of all home purchases in our market. Today, they are selling at a 10 to 1 ratio versus purchases. With the chronic shortage of resale homes, many buyers are turning to new builds. Builders are experiencing an extreme seller’s market and buyers are likely to feel a little less appreciated than usual as developers can easily sell all the homes they are able to build.

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.

First Time Home Buyer

Phoenix First Time Home BuyerLooking to buy your first home in Phoenix? There are three loan types and one down payment assistance program that may be ideal for you, depending on your situation:

1. Conventional loan is a mortgage available to buyers with as little as 3% (of property sales price) down payment. This will require mortgage insurance (in the form of a monthly premium built-in to the mortgage payment) unless the down payment is 20% or more of the sales price. Generally, mortgage insurance can later be removed by the lender once the equity in the home exceeds 22%. Borrowers will need to have a FICO credit score of at least 640 and typically the higher the credit score, the lower the insurance premium will be.

2. FHA loan is a mortgage available to buyers with as little as 3.5% (of property sales price) down payment. Mortgage insurance will also be required (in the form of a monthly premium built-in to the mortgage payment) but allows for borrowers to have a FICO as low as 580. For borrowers with a 500-579 FICO credit score, they must put down 10% of the sales price. Mortgage insurance remains for the life of the loan, so the only way to avoid paying it is to refinance out of an FHA loan into a conventional loan when possible for the borrower.

3. VA loan is a mortgage available to military (active or retired) buyers with as little as 0% (of property sales price) down payment. There is no mortgage insurance required however there is a VA funding fee of about 2.5% that is added to the loan balance at time of origination. Typically a borrower will need a FICO credit score of at least 640 to qualify, along with their military certificate of eligibility from the VA.

Arizona also offers a down payment assistance program to help first time home buyers in Phoenix. The main benefits of the Home Plus loan program are down payment assistance, closing cost assistance and reduced mortgage insurance premiums. To be eligible, buyer must occupy home as their primary residence, the home price cannot exceed the program limit, buyer must meet income and credit score requirements, and finally the buyer must also complete an educational course about borrowing and home ownership. Borrowers who qualify for Home Plus can get up to 5% of the purchase price in the form of down payment assistance. This gift is by way of a no-interest (silent) second mortgage that is 100% forgiven as long you do not sell or refinance your home for 3 years.

Questions about these loan types or down payment assistance program? I can put you in touch with a variety of reputable local Phoenix lenders to handle all your inquiries.

Oldest Home in Phoenix

Oldest Home in Phoenix
Happy 135th Birthday! If the Farmer-Goodwin property is not the oldest remaining home in Phoenix, it is certainly tied for first and features the most interesting history.

Originally built in 1883 by a saloon keeper on land he bought in 1880, it was then purchased by Hiram Farmer in 1886 for $3000 and situated on 160 acres. It served as Farmer’s home during his work as (what is now) Arizona State University’s first professor and principal.

So where does Goodwin fit in? When the railroad arrived in 1887, Farmer developed his land into one of Tempe’s early subdivisions but when he left the area in 1890, the property passed through several owners until it was acquired in 1897 by James Wilson, whose daughter Libbie married James Goodwin in 1902 and the house was deeded to her.

Goodwin was a successful Tempe rancher and businessman. He was a member of Theodore Roosevelt’s Rough Riders during the Spanish-American War and served in the Arizona State Legislature from 1915 to 1918. The house continued to be owned by the Goodwin family until the death of James and Libbie’s son, Woodrow Wilson Goodwin, in 1992.

The home represents Victorian-era architecture but lacks the “gingerbread” detailing often found in Victorian-era buildings. It is a two level adobe structure, rectangular and symmetrical in floor plan, with exterior adobe walls finished in plaster and scored with lines to simulate the look of cut stone.

Inside the house has a central hall with approximately equal-sized rooms symmetrically on either side of it. The room layout is identical on the upper level and access is by a stairway in the central hall, located in the very middle of the home.

Today the mansion sits on a 25,000 sqft lot and features just over 4,000 sqft living space along with a pool and detached 2-car garage with guest casita. It resides (aptly) at 820 S Farmer Ave and is in the National Register of Historic Buildings.

Farmer-Goodwin floor plan

11011 W COLLEGE DR, Phoenix

* SOLD IN 4 DAYS OVER LIST PRICE WITH MULTIPLE OFFERS * This newer home is move-in ready, thanks to all brand new carpet just installed and fresh neutral interior paint throughout! Enjoy easy maintenance inside with laminate wood floors on entire downstairs and carefree backyard with artificial grass, covered patio and paver stones. No house right on top of you in the back, so you have room to breathe! This original owner home has upgraded ceiling fans and dark faux wood blinds in each room, sharp black appliances in kitchen, plus Whirlpool washer and dryer are included in the upstairs laundry room. Close to loop 101, Westgate shopping/dining/entertainment, Cardinals Stadium, Jobing Arena, Tanger Outlets and baseball spring training.

Spotless original owner home for sale in Phoenix with new carpet and paint, plus easy maintenance yard, marketed by Phoenix Realtor Andrew Robb.

Listing Price: $159,000
MLS #: 5223439
Address: 11011 W COLLEGE DR
City: Phoenix
State: AZ
ZIP: 85037
Home Size: 1,902
Lot Size: 4,200
Bedrooms: 3
Bathrooms: 2.5
Garages: 2
Pool: N
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3829 E POINSETTIA DR, Phoenix

* SOLD IN 14 DAYS * Close to countless amenities, dining and shopping, plus easy 51 access and no HOA. Worried about an old AC? Not here, as the unit was replaced in 2010. Concerned about an old roof or paint? Your roof is from 2010 and the full home exterior was just painted this month, which means you don’t need to think about it. Very open kitchen for entertaining, plus new interior paint and carpet throughout makes this bright home move-in ready! Large diving pool and extended covered patio means lots of good times outside. For convenience, all appliances are included (even washer/dryer) and so is the backyard storage shed. This is not a flip home, just a very proud homeowner giving you an opportunity to make it yours!

Check out a virtual tour of this Phoenix home for sale in Paradise Valley school district!

Move-in ready Phoenix home for sale with so many recent improvements, listed by Phoenix Realtor Andrew Robb.

Listing Price: $249,900
MLS #: 5150491
Address: 3829 E POINSETTIA DR
City: Phoenix
State: AZ
ZIP: 85028
Home Size: 1,612
Lot Size: 10,476
Bedrooms: 3
Bathrooms: 2
Garages: 2
Pool: Y
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Andrew Robb - RE/MAX Fine Properties, 21020 N Pima Rd, Scottsdale AZ 85255