While tracking the ups and downs, historic lows keep the Valley real estate market at the top of the “Nice” list.
According to the National Association of Realtors 2020 Real Estate Forecast Summit, the Phoenix metro area ranked among the top 10 markets during the pandemic and in a post-COVID environment in 2021-22.
While rankings considered various factors, relocation to the area, the percentage of workers working from home and the number of multi-generational households were cited as top reasons Phoenix made the list. That’s encouraging news, as the potential for COVID-19-related foreclosures and evictions continues to be a looming concern.
High demand and low inventory continue to keep our local market strong.
During November, 399 MLS listing sales closed in Glendale and 380 in Peoria.
As of Dec. 21, there were 159 active and available listings (not counting properties already under contract or pending close of escrow) in MLS in Glendale and 179 active listings in Peoria.
That’s 40% of one month’s inventory in Glendale (down from 50% in October) and 47% of one month’s inventory in Peoria (down from 56% in October).
The Dec. 21 Maricopa County inventory was 69.5% of November’s closed sales (down from 75.8% in October).
Showing traffic continues to see slight decreases. According to ShowingTime, the platform Realtors use to schedule most of the MLS showings, during November, listings in the $200,000-$299,999 range averaged 12.97 showings per listing in Glendale and 14.09 in Peoria.
The next closest was the $300,000-$399,999 range, with 12.57 showings per listing in Glendale and 9.51 showings per listing in Peoria.
And not every showing is scheduled through ShowingTime, so the actual numbers are higher.
According to Freddie Mac, mortgage rates have hit another record low. As of Dec. 17, National Mortgage Rates reported U.S. weekly averages of 2.67% for a 30-year fixed, 2.21% for a 15-year fixed rate and 2.79% for a five-year ARM.
November entry-level prices for a detached home with three bedrooms and two baths increased and decreased across financing options.
While the lowest price paid for a home with conventional financing in Maricopa County increased to $172,900, Glendale conventional buyers saw a decrease to $221,200 and Peoria conventional buyers a reduction to $172,900.
Buyers using FHA financing saw declines in prices paid with a minimum of $178,000 in Maricopa County, paid in Peoria, while Glendale FHA buyers paid a minimum of $199,000.
Peoria VA buyers saw no change, with a minimum of $260,000 paid, while Glendale VA buyers saw an increase to $240,000 and Maricopa County VA buyers an increase to $215,640.
According to MLS statistics, the number of buyers financing their purchases in November dropped from 83.7% to 76.4%. Conventional financing made up 77.5% of those sales, FHA 14.8%, VA 7.6% and the remaining sales used other financing methods.
If your finances are seeing fewer ups than downs right now, please know that you are not alone. If you’re a homeowner, contact your lender to see what programs they are offering. If you’re a tenant, rental assistance is available through the Arizona Department of Housing website at saveourhomeaz.gov.
If you’re a landlord, you can apply for aid at arizonatogether.org/grants.