As has been the case for quite a while, housing inventory in greater Phoenix is in extremely short supply. In fact, if no more homes were to come on the market, we would run out of homes to buy in about 15 days! This dynamic means that prices are still on the rise. Our median sales price is $360,000, up 18.1% year over year, and active listings are 4,177, down from 70,2% year over year!
Interest rates have stabilized, at least for now, with 30-year loans at 3.13% with .7 points (Freddie Mac, February 11, 2021). As to where rates go from here, Fed Chairman Powell has said that the Fed will not be raising rates until inflation achieves 2% (or higher) and the labor markets (real unemployment rate) have recovered across all salary levels (Federal Reserve, March 2021). This is very good news for both buyers and sellers as well as those seeking to refinance.
One solid indicator of just how strong this market really shows up in increasing offered above asking price. Last January the median amount paid over asking was $6,000. In February, the median paid over asking was $10,000, and March was $11,000 over. So far in April the median price paid above list price is $15,000 (Cromford Report, April 2021), and 54% of MLS recorded home sales have closed over asking price (ARMLS).
Wow!! Sellers, get ready for a very fast close. Have your move-to home picked out and ready.
Buyers, what can be said about competing in the market? Know what you want and be ready to act. Have your financing lined up. And, as always, if you are buying or selling, please work with a trusted real estate agent and loan officer. They can help you make the best real estate decision.
