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.

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
Get Directions

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
Get Directions
RE/MAX Fine Properties
21000 N Pima Rd, Suite 100, Scottsdale AZ 85255