If you don't live in Arizona, and you were wondering what the market is like currently in Arizona. We can help you decide if it is a sellers market also.
A local real estate agent recently reported that they received 17 offers on a home for sale in Phoenix Arizona, within 24 hours of listing it for sale.
Buyers agents are writing up offers waiving the appraisal contingencies, writing offers significantly over the list price of the home, and some buyers are willing to pay cash for the difference, if the home does not appraise.
Existing Home Sales Report, which shows that the inventory of homes for sale is currently at an all-time low. The report explains:
“Total housing inventory at the end of December totaled 1.07 million units, down 16.4% from November and down 23% from one year ago (1.39 million). Unsold inventory sits at an all-time low 1.9-month supply at the current sales pace, down from 2.3 months in November and down from the 3.0-month figure recorded in December 2019. NAR first began tracking the single-family home supply in 1982.”
(See graph below):
After all this the experts still believe owning a home in Arizona is more affordable then renting one.
ATTOM Data Solutions recently released the 2021 Rental Affordability Report, which states:
“Owning a median-priced three-bedroom home is more affordable than renting a three-bedroom property in 572, or 63 percent of the 915 U.S. counties analyzed for the report.
That has happened even though median home prices have increased more than average rents over the past year in 83 percent of those counties and have risen more than wages in almost two-thirds of the nation.”
What does this mean for sellers? Basically the moment you list your home expect it to sell if it is priced correctly. Some sellers are getting a little carried away with prices and one way or another the deal falls through. Then once you sell, you now have become a buyer and now your faced with competing with multiple offers, and working hard to find a home to buy.
All the experts agree, Arizona is in a sellers market, from Phoenix to Payson, to Happy Jack. They all have a low supply of homes. Buyers that are patient will win and wind up with a home. With record low mortgage rates, this can be a win for the future.
Charts from KCM