Andrew Robb | Andrew Robb RE/MAX Fine Properties Andrew Robb | Andrew Robb RE/MAX Fine Properties

Phoenix Real Estate Report

phoenix real estate market update
1. How fast are homes selling? Average number of days on market is 28 (down 21 days from last year)
2. How many homes are for sale? We currently have 9,932 properties for sale (down 11% from last year)
3. What is the average sales price? Homes across the city are selling for $491,475 (up 23% from last year)

August’s supply was up 2% from August 2020 (with 11,113 homes listed for sale last month) and August’s demand was down 2% from August 2020 (with 9,051 homes sold last month). Average home values increased 23% in the last year and we still have only 1 month of inventory, which is down from 1.4 months at this time last year. 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. The fact we remain yet again around 1 month of inventory for another month continues to be remarkable.

What is going on? The term absorption rate refers to a metric used to evaluate the rate at which available homes are sold in a market during a given time period. It is calculated by dividing the number of homes sold in the allotted time by the number of available homes. Our absorption rate peaked in March at the height of our frenzied spring market. For the next four months our market showed a cooling trend but in August we saw a slight reversal, with the absorption rate again moving higher indicating our market warmed in August.

In August 2020, nearly 91% of all homes purchased were by traditional buyers (defined as individuals or married couples). In August 2021, this number fell to 75%. We saw a significant increase in the number of properties purchased by large institutional investors as well as small investors. It should be noted that the appetite of institutional investors can change quickly for a myriad of reasons. As we’ve seen in the past, they can enter as well as exit our market quickly. Currently they are on a buying spree, which begs the question: are institutional buyers the driving force behind our recent price gains?

With the July 31 expiration of the federal moratorium on foreclosures, many people are anticipating an increase in foreclosures. I am expecting an increase, but only a modest increase well below historical standards. Borrowers collectively have record levels of home equity and with the seller’s market remaining hot, property owners in peril have options and can easily place their homes on the market. Let’s assume that the homes in forbearance were purchased prior to the COVID-19 outbreak in March of 2020, when the median sales price for a resale home hovered around $300,000. Based on today’s median value of $405,000 their properties have appreciated 35% while in forbearance. Although notice of trustee sales activity did increase over last year, it is still at historical lows. This past month there were only 139 new residential notices of trustee sales filed.

In Conclusion, I’ll leave you with a quote from Frank Martell, President & CEO of CoreLogic:
“Home price appreciation continues to escalate as millennials entering their prime home buying years, renters looking to escape skyrocketing rents and deep pocketed investors drive demand. On the supply side, it is also the result of chronic under building, especially of affordable stock. This lack of supply is unlikely to be resolved over the next 5 to 10 years without more aggressive incentives for builders to add new units.”

Data from ARMLS® COPYRIGHT 2021.

15620 N 165TH DR, Surprise

* UNDER CONTRACT * Delightful home with vaulted ceilings & no neighbors behind has been lovingly cared for: new pool filter & salt system (Sep 2015), exterior painted (Feb 2016), new Trane AC (Nov 2016), air ducts cleaned (Aug 2017), new dishwasher & garbage disposal (Nov 2019), new carpet & upgraded pad throughout (Sep 2021). Large eat-in kitchen features stainless appliances & under cabinet lights with remote control. Third bedroom configured as office/den: has closet with door & room is open to hallway. Master bedroom has bay window overlooking 15’x30′ green pebble-tec pool & surrounded by mature landscaping with artificial turf. Relax outside on expanded patio that includes professional misting system. Quick & easy access to loop 303.

Surprise AZ home for sale, marketed by Surprise AZ Realtor Andrew Robb.

Listing Price: $425,000
MLS #: 6289414
Address: 15620 N 165TH DR
City: Surprise
State: AZ
ZIP: 85388
Home Size: 1,621
Lot Size: 5,830
Bedrooms: 3
Bathrooms: 2
Garages: 2
Pool: Y

10101 N ARABIAN TRL 1049, Scottsdale

* SOLD FOR $11k OVER ASKING * Completely remodeled condo offers the finest on-trend finishes & utmost attention to detail: 7” wide plank hardwood floors, custom designed stone & tile fireplace with with built-in cabinetry. Bright gourmet kitchen has granite countertops, breakfast bar, stainless appliances & is open to living room, making it perfect for entertaining. Master bedroom boasts stunning ensuite & walk-in closet. Spacious split floorplan & desirable ground floor unit, with private 1-car garage. Casabella complex offers 2 pools, spa, lighted tennis court, fitness Center, club house & lush resort-style grounds. Easy access to 101 freeway, lots of retail, tons of restaurants, grocery stores, parks & walking/bike path that goes all the way to Tempe, plus 8 golf courses & Talking Stick Resort are within 15 minutes.

Scottsdale condo for sale, marketed by Scottsdale Realtor Andrew Robb.

Listing Price: $399,000
MLS #: 6277715
Address: 10101 N ARABIAN TRL 1049
City: Scottsdale
State: AZ
ZIP: 85258
Home Size: 1,055
Lot Size: 1,048
Bedrooms: 2
Bathrooms: 2
Garages: 1
Pool: Y

26047 N 68TH DR, Peoria

* UNDER CONTRACT * Updated home on corner lot with resort style backyard, 3-car garage and lots of built-in storage cabinets. Large inviting heated pool with waterfall and spa, plus built-in BBQ and raised sitting area with fireplace for entertaining. Recently remodeled white kitchen that opens to family room is ideal for hosting parties and features roomy eat-in area plus fireplace at family room. Renovated flooring brings modern touch to main living areas. Big bedrooms (including one downstairs with walk-in closet) and spacious loft for extra living space. Grassy side yard is ideal for playing or pets.

North Peoria home for sale, marketed by Peoria 85383 Realtor Andrew Robb.

Listing Price: $570,000
MLS #: 6272966
Address: 26047 N 68TH DR
City: Peoria
State: AZ
ZIP: 85383
Home Size: 3,120
Lot Size: 7,895
Bedrooms: 4
Bathrooms: 3
Garages: 3
Pool: Y

20015 N 17TH DR, Phoenix

* SOLD * NO HOA! New roof in Dec 2019 with 30-year shingles. Brand new carpet in all bedrooms & entire interior just painted. Tastefully remodeled throughout & dual pane windows. Gorgeous gourmet kitchen boasts granite countertops, newer cabinets & stainless steel appliances. Both renovated bathrooms with sinks, faucets & counters. Plenty of space in 2000 sqft with living room, family room & Arizona room (enclosed patio). Mature desert landscaping front & back, newer fenced-in backyard & newer carport for 2 vehicles, plus driveway parking for 3 more. 2 central AC units for efficient dual zone cooling! Elementary school is only one block away, high school & middle school bus stops on the block. Easy access to 101 & I-17.

North Phoenix home for sale, marketed by North Phoenix Realtor Andrew Robb.

Listing Price: $384,900
MLS #: 6242186
Address: 20015 N 17TH DR
City: Phoenix
State: AZ
ZIP: 85027
Home Size: 2,000
Lot Size: 7,347
Bedrooms: 4
Bathrooms: 2
Pool: N
Andrew Robb - RE/MAX Fine Properties, 21020 N Pima Rd, Scottsdale AZ 85255