• Number of single-family houses hitting the market is now a bit higher than last year,
• But sales are still high,
• So, the number of houses listed for sale is still crazy low.
Autumn. The Phoenix real estate market should slow down in September as it always does but the market is so tight right now that it won’t be a normal autumn market.
Congress. I’m surprised Congress didn’t pass an extension of the unemployment supplement last week but I expect something to pass next week, although it will be less than the current $600/week – let’s say, $500/week. It is an election year after all.
Biggest Factor. Despite all the uncertainty regarding unemployment benefits, eviction moratoriums, mortgage forbearance and the pandemic, I expect the Phoenix real estate market will be driven by lower mortgage interest rates until sometime next year. Even if we see headwinds next year, the lower rates will blunt the downside impacts.
I don’t see interest rates increasing for many, many months. In fact, I’m expecting them to fall a bit more over the next few months.
For U.S. real estate market analysis,
go to Real Estate Decoded.
Running a bit higher than last year at this time. Probably people who put off selling in April and May. How much will new listings slow down after we work our way through this delayed spring wave?
Not falling anymore but only HALF of 2019.
Slowly fading like it always does this time of year but the number of single-family houses under contract is still running higher than last year.
Sales are a lot higher than in 2019 and will remain high through August for sure and probably through the autumn.
Tell me in the “Comments” what you think.
This information can vary a lot in different parts of metro Phoenix. Your real estate agent can find the data for your specific city or zip code at The Cromford Report.
Note. This post was written on Augest 2, 2020 but the graphs will be continually updated.
4 Responses to Phoenix Market Still Crazy Tight
crossing my fingers this market stays crazy. Selling my worst rental for an insane price…
Great! In March, who would have guessed the market would be like this? On investment properties, I’m of the, “If you don’t love it and plan to own it for 10 more years, then sell it” school of thought.
It boggles the mind that Congress could not pass a new stimulus package, but I guess one will come this week. Arizona is one of the most affordable states in the West so I think we will continue to see migration here. With the low rates and we should be OK. My sense right now is the crazy times will continue, but sometimes things change on a dime and you wonder what just happened. As an investor I couldn’t be more happy with prices going up and rental demand being strong. My fingers are crossed too things stay “crazy insane”.
We’re on the same wavelength. I expect the craziness to continue, too, but in April I did NOT expect the market to be crazy hot this summer so I take my expectations of what will happen to the market with a grain of salt. I like the idea of planning for different scenarios – if X happens, be ready to do Y, but if Z happens, be ready to do A.
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