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MARKET SNAPSHOT
62.8% of Homes Sold Considered Affordable Last Quarter
Median Sales Price Up 27%, Incomes Up 26%
For Buyers:
Despite all the incredible news about rising real estate prices, a family making the median income of $79,000 in Greater Phoenix could still afford 62.8% of what sold in the first quarter of 2021. The National Association of Home Builders (NAHB.org) assumes that “a family can afford to spend 28% of its gross income on housing.” That means 62.8% of homes sold cost their new owners $1,843 per month or less assuming a 10% down payment and including principal, interest, taxes and insurance. According to HUD, $79,000 represents a 26% increase in the local median annual income over the past 5 years; up $16,500 from $62,500 in 2016.
While reassuring, it doesn’t remove the frustrations of competing for homes in this marketplace. Last month, 56% of all sales closed over asking price and half of them went $15,000 over or more to win. For the last 7 weeks, half of all listings that went under contract in the MLS were active for just 6 days or less.
However, the last few months have shown a glimmer of relief for buyers as supply counts actually stopped declining; and in price ranges between $500K-$800K they have noticeably increased 40% since February. Supply is still 69% lower than last year at this time so there’s a long way to go before it’s considered normal, but it’s something.
For Sellers:
You’re not going to notice this, but the housing market has begun to cool down. It’s still hot however, like 400 degrees is still hot despite being cooler than 500 degrees. Sellers can still expect multiple offers and closings over asking price; however it’s important to note that supply has stopped dropping and has been rising in certain price points over $500K. Seasonally speaking, Greater Phoenix supply should be dropping at this time of year, not going flat or rising. When measures go against the season, it can be the beginning of a shift.
The reason this shift will not be noticed is because supply is still much lower than demand, so any slight increase in competition is inconsequential to a seller’s ability to secure a buyer, even one willing to pay over asking price. One of the early indicators that a market is shifting, however, is the number of list price reductions. For example, supply between $600K-$800K has risen 45% since late February; in the same time frame, the number of weekly price reductions increased 223% and hit the highest count taken in nearly 6 months. That’s notable. However in other price points where supply has flattened out, price reductions have remained low and stable.
The advantage in any market, not just housing, is being one of the first to know when things are shifting. Especially today, it’s a good idea to consult a Realtor® who can analyze your price point and area so you can make an informed decision regarding the sale of your home.
Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report
©2020 Cromford Associates LLC and Tamboer Consulting LLC
More reporting available to you, more specific to your location, if interested, please call 480.529.0938, or reply to this email with your needs.
FEATURED OPEN HOUSES THIS WEEKEND!
9112 W TOPEKA DR • Peoria 85382
Offered at $338,000
This one is Just right with High End Vinyl Plank Flooring, Updated kitchen with Granite Counters,Tile Backsplash & Black/Stainless Steel appliances. Refrigerator, Washer, Dryer stay.Guest Bath remodeled 2018. Spacious outdoor patio looks out over Lush greenbelt and plants that HOA maintains. New Cabinets in Garage. AC replaced 2019 Sliding door and windows were just replaced. Roof and exterior maintenance taken care of by HOA & cable incl too. Westbrook Village offers 2 Championship Golf Courses, Pools, Tennis, Activities and a social environment to make new friends and enjoy life!! Great location minutes to the freeway for those adventure days. Whether you're looking for Lock and Leave or year round living you'll be glad to call this HOME!!! Nice cul-de sac street w/extra parking. patio; cabana with fp to warm your cool nights; pool; and a putting green. This is an entertainers paradise dream home!! This is a smart home, control your lights, music, temperature, security, from anywhere in the world! A fun and entertaining paradise dream home you must see to appreciate!
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15846 E THISTLE DR • Fountain Hills 85268
Offered at $700,000
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Sunday, May 23nd
12 PM - 4 PM
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5812 N 14TH AVE • Phoenix 85013
Offered at $599,990
Beautiful contemporary mid-century ranch in high demand CenPho neighborhood. Well cared for, freshly painted, move-in ready. Kitchen has maple cabinets, SS appliances, tile counters, full back splash & large island/breakfast bar. Gorgeous wood beam ceiling, floor-to-ceiling windows & a stone fireplace create an amazing great room. Charming front patio & huge backyard with a big covered patio is an entertainer's dream. Roof, sewer lines & electric panel new in 2020. Newer HVAC unit with wifi t-stat, updated baths, flooring & fixtures. 1/3 acre lot with mature landscaping is both irrigated & has sprinklers. So much storage! 2c attached garage plus a detached garage for your boat, RV, toys! Great central location with easy access to light rail, downtown, shopping, restaurants & freeways.
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10 AM - 4 PM
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3183 E ROSE LN • Phoenix 85016
Offered at $1,050,000
Beautiful home in guard gated Biltmore greens. Move in ready. Fenced play pool and yard backs to private arroyo with mountain views. Home just painted and new carpet just installed. Remodeled bathrooms with custom cabinets and granite counters. Remodeled kitchen(2011)has all stainless steel appliances, granite counters on island, custom upgraded cabinets t/o and eat in kitchen and eat at counter. Kitchen opens to large family room. Vaulted ceilings in entry, living and dining room. East side of yard sides to private wash. Grass in front and backyards..HOA takes care of grass in the front. Minutes from hiking, retail and restaurants.
Saturday, May 22nd 11 AM - 2 PM
Sunday May 24th 12:00 PM - 3 PM
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8241 E DEL CAMINO DR • Scottsdale 85258
Offered at $2,100,00
Timeless Italian Villa which brings to mind a tropical Florida atmosphere - on the lake, not the ocean this time.. Home sits on the best pie shaped lot on Lake Marguerite with a water front exposure of 136 ft as opposed to the vacant lot next door was sold at $1,3M with only 87ft water front. Also sunrise to sunset views (Camelback) as well as long south facing views across the lake. Total privacy. Large 4,600 sft home with 5 bedrooms and 5 bathrooms. and casita with own bath. 4 car tandem garage , beautiful living spaces with high ceilings and drop dead lake front views. House needs TLC. Deferred maintenance - put a few hundred thousand dollars in it and you have a $3,M home with equity in it too, Its a chance in a life time. Two levels? Do not worry, it has a chair lift
Sunday, May 23rd
11 AM - 5 PM
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