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 41 (down 15 from last year)
2. How many homes are for sale? We currently have 11,777 properties for sale (down 27.3% from last year)
3. What is the average sales price? Homes around the valley are selling for $428,038 (up 23.5% from last year)

October’s supply was up 12.8% from October 2019 (with 11,325 homes listed for sale last month) and October’s demand was up 24.8% from October 2019 (with 10,029 homes sold last month). Average home values increased over 23% in the last year and our current market absorption rate is only 1.43 months, which is down from 2.01 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.

What is going on? The calendar says fall, but our housing market looks just like our traditional spring selling season. Since the March and April market step-back, our housing numbers have been running at a frenzied pace. We expected a record October for home sales and a record October is what we got: the highest sales volume for any October in history, smashing the October 2004 total of 8,173 by 18.6%. Even after our dismal spring numbers, the total number of sales to date in 2020 has surpassed 2019 – and 2019 was a very good year!

What can we expect? Clearly, this remains a very strong seller’s market with most properties seeing multiple offers. As buyers attempt to win in this competitive environment, they are offering over asking price in many cases and so we are seeing appraisal shortfalls with homes not being valued as highly by appraisers – resulting in a growing number of homes coming back on the market. For November, my prediction is we will see approximately 8,300 home sales. The highest sales volume ever in November occurred in 2004 when we reported 8,071 home sales. When our November sales are reported next month, we might very well see another new record!

Interested in getting multiple competitive offers to buy your house? My 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

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
Andrew Robb - RE/MAX Fine Properties, 21020 N Pima Rd, Scottsdale AZ 85255