May 2020 Market Update

Below is the latest real estate market update.  Key takeaways for us are: 1) it’s still a good time to buy OR sell (low interest rates and low inventory), 2) while it remains a seller's market, sellers should still expect to see buyers looking for move-in ready homes.

We remain ready to assist with any of your real estate needs.  Stay safe!

~Torey and Ryan

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 buyers’ closing costs were present in 25% of all recently 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.

As always, if you are buying or selling in the midst of all this, please work with a trusted real estate agent and loan officer to help in your decision-making.