Phoenix’s Real Estate Market Update for October 2020

2020 has been anything but predictable.  It seems every month there has been a new challenge, a new disappointment, yet at the same time there has also been a tremendous amount of opportunity; especially in the Phoenix real estate market.  While everything else around us has been unpredictable, we’ve been able to count on an incredibly strong housing market and historically low interest rates.  And while inventory has been an issue for buyers looking for a home, the amount of home they can afford to buy has increased greatly due to those rates.  

So ‘how’s the market?’ in Phoenix? 

Generally when someone learns you’re a Realtor®, the first question they ask is ‘how’s the market?’  The answer is always the same – ‘that depends.’ It seems like an evasive response – but it really does depend on a lot – whether you’re a buyer, a seller, the price point you’re  shopping in, the area of the Valley…lots of things will skew the perception of how the market is doing.  Overall though – we’re in a Seller’s market and have been for quite some time.  The driving force behind that is the basic principles of economics: supply and demand.  Simply stated there are more people out there looking for homes than we have available.  Exceedingly low inventory just isn’t able to keep up with the demand – so if you’re looking to sell, there really has never been a better time to do it. Let’s take a deeper dive into the market and see how things are doing…

How many homes sold in Phoenix during October?

Total Number of Homes Sold in October: 10,038
Year-Over-Year Increase: 24.9%

Valley home sales topped 10,038 in the month of October – that’s nearly a 25% increase year over year and a sign that homes are moving on and off the market at a rapid pace.  As a real estate agent we hope to see solid growth in trends but numbers like these are very strong.  

How long were homes staying available on the market in Phoenix during October?

Average Days Homes Were Listed Before Closing: 45  
Year Over Year Decrease: -21.05%

Homes were not only selling; they were selling quicker. Currently, we’re seeing a 21% decrease in the average time for a home to be listed before sale compared to the previous year.

How many active listings were there in Phoenix during October?

Total Number of Active Listing in the Month of October: 12,711
Year Over Year Decrease: -21.6%

The number of active listings is where we start to recognize the competitive nature of the market for home buyers.  With only 12,711 active listings on the market and closed sales of 10,038 – the inventory of available homes is slim.  If you’re looking for homes for sale in Phoenix, start your search here. If you’re looking to get an update on your home’s value, start here.

How many newest listings hit the market in Phoenix during October?

Total Number of Newly Listed Homes for Sale in Phoenix: 11,249
Year Over Year Increase: 12% increase

While inventory was down dramatically year over year, but we remain optimistic now that the election is behind us that we’ll begin to see more available homes hit the market.  October saw an increase of new listings year over year which is a good sign that we may see more consistency in available new inventory.  

What was the average sales price for homes in Phoenix during October?

Average Closing Price: $427,871
Year Over Year Increase: 23.43%

As will happen with the supply and demand curve, Phoenix saw one of the largest year-over-year price increases in recent history and one of the highest appreciation rates in the Country.  The average price that homes sold for was almost 25% higher than it was this time last year.  

How many homes went under contract in Phoenix during October?

Total Number of Homes Under Contract: 6,596
Year Over Year Decrease: -16.9%

The number of homes under contract in October shows a fairly sizable decrease from the same time period last year.  While this may seem to indicate a decrease in demand, the reality is with slimmer inventory on the market the reduction in the number of homes under contract is falls in line with these percentages and represents a relatively normal figure.  

What was the Sales-to-List Price Ratio in Phoenix during October?

Asking-to-Closing Price Ratio: 98.79%

With multiple offers on most properties and a highly competitive buyer environment, there’s no surprise that sellers are receiving top dollar for their listings.  Most properties are selling either at list price or slightly over, again depending on the market, etc.  To be successful, buyers are encouraged to present their highest and best offer and have terms that are competitive to win.  To learn more about competing in this tight market, drop me a line.  

Do yourself a favor. Get an updated home valuation.

If you’re thinking about selling your home, or just curious about its’ current value, it makes sense to get an up-to-date home valuation to see where your current situation is. Most of my clients start by submitting the home valuation tool on my website. If you have any questions at all, feel free to contact me using either of the methods below.

Phone Number: 602-330-6813
Email Address: brian@brianeastwood.com