A question I’ve been hearing a lot lately is, “What has been going on with the Arizona Real Estate Market during COVID-19?” My honest answer is that the #azrealestatemarket has been holding steady and the market is now on FIRE! Buying and selling has not slowed down here in Arizona, in fact, the market has been heating up right along with the temperatures outside. My business has been steadily increasing with new clients moving to Arizona from out-of-state, clients ready to upsize to a larger property after the #stayathome orders these past few months have made them realize they are out of space, and I have many clients who view this time as the perfect opportunity to make a move and take advantage of the extremely low #interestrates. I have spoken to many colleagues who are experiencing the same boost in their real estate businesses and with the low level of inventory and the higher levels of demand, I do not anticipate a slowdown in sales.
Real Estate Market Update Phoenix Arizona May 2020
One month further into COVID-19 and the Phoenix real estate market is doing well. Active listings are 13,455, down 22.2% year over year, and the median sales price is $295,000, up 8.3% year over year. As to how these prices compare to mid-February prices, before the pandemic took hold, homes under $500,000 are listing at or above February’s price per square foot, while for those homes above $500,000, the list price per square foot is down slightly. (Cromford, 5-11-2020)
While prices are up, interest rates are down. Thirty-year money stands at 3.26% with .7 points. (Freddie Mac, May 7, 2020)
Buyers may want to take advantage of today’s prices and low interest rates, and Sellers should understand there are fewer cash buyers for homes in as-is condition. Both Sellers and Buyers should expect more negotiation in today’s transactions. Sellers assisting with Buyer’s closing costs were present in 25% of all recent closed transactions as compared to just 18% four weeks ago.
Buyers should not expect bargain prices, especially below $500,000, and Sellers should expect tougher negotiations with Buyers expecting homes to be in move-in condition.
Mid-June 2020 Arizona Real Estate Market Update
Let’s take a peek at how things have changed over the past month now that Arizona has fully reopened. As of 6/17/2020, Active listings are down to just 9865 with a total of 14257 properties currently Under Contract (UCB, CCBS, Pending). People are still out buying and selling homes in Arizona and the market is not showing any signs of slowing demand or diminishing home prices. Move-in ready homes are in high demand among buyers who are not wanting to put in a lot of work or money into updating/renovating a property. Homes that are priced well and show well are selling very quickly in this market, often with multiple offers. It is also important to recognize the need for additional patience with the process as things have been changing daily in terms of lending requirements and escrow processes. We are starting to see the return of “business as usual,” however, during the shutdowns, the process was drastically different in lending, escrow/title and closing procedures. This is why it is so incredibly important to work with an experienced Realtor who will ensure a smooth and successful experience, regardless of the changing times. Experience matters now more than it ever has, and it has ALWAYS been of utmost importance.
If you are thinking about making a move during the craziness of the COVID-19 pandemic, then please don’t hesitate to reach out. I have helped multiple clients buy and sell with success and I am here to help you too! I am an experienced, local real estate specialist serving the entire East Valley of Phoenix, Arizona. It would be my honor to assist you on your real estate journey and help you to navigate the process of buying and selling Arizona Real Estate during COVID-19 and any other crisis that we may experience in the future. Working with an experienced team of real estate professionals matters even more now than it ever did. From start to finish, I will be there to guide you and answer your questions with no pressure, only the highest level of care and support! Please don’t hesitate to contact me via email or call/text 480.220.1321 to schedule a no obligation consultation today.
Keely Semon, Realtor®
East Valley Real Estate Specialist
United Brokers Group