Arizona Real Estate is Hotter than the Weather!

[Jared Smith]

This is a recap of the stats for June 2020. Total is everything in the MLS.

As you can see by the numbers, listings are still very low in the total market! Sales actually picked up by 2.6% even with the lack of inventory. We now have 1.68 months of supply or -26.8% less listings than last year, for all residential properties in the market! 

Here are the June, 2020 Average price sold and % of increase by area. This number shows the appreciation over last year for the month of May. Notice that all cites are an increase.

Month of May Average Sales Price Vs. Last Year.

• Total $369.6 +5.48%
• Scottsdale $640.0 +.49%
• Paradise Valley $1878.2 +3.35%
• Fountain Hills $567.5 +17.2%
• Cave Creek $537.1 +3.65%
• Carefree $835.4.0 +13.2%%

Year to Date % Increase or Decrease Average price sold January-June vs. LY January-June.

• Total +8.8%
• Scottsdale +8.0%
• Paradise Valley +.03%
• Fountain Hills +12.96%
• Cave Creek +17.6%
• Carefree (5.5%)

[Matt Morgan]

Originally posted by @Jason Wray:

The numbers we are seeing during national sales calls are crazy in AZ right now.  I am wondering where the influx of buyers are coming from to see some of these numbers.  Do you see a spill over from Ca or Foreign National?  I would be curious to see the percentage of Primary versus Invest.

The strength of the market is being disproportionately driven by lack of supply vs. excess demand. 

As per your second question, I'll quote some information from the Cromford Report:

"Using the Intended Use (IU11) chart from Cromford® Public we can see that there was a dramatic change in the mix of transactions during the second quarter of 2020, compared with any previous quarter.

Comparing specifically with the second quarter of 2019:

• Purchases for owner-occupied primary residences increased from 74.6% to 82.7% of all sales across Maricopa and Pinal County
• Purchases of second homes decreased from 10.1% to 8.3% of all sales
• Purchases by investors dropped from 10.7% to 8.1% of all sales
• Purchases by iBuyers fell from 3.7% to 0.7% of all sales

The dramatic collapse of iBuyer purchases means they are starting the third quarter of 2020 with much lower inventories than they started the second quarter..

Investors were less active during the second quarter of 2020 and cash purchases were lower than normal too - they fell from 21% to 15% of all sales between Q2 2019 and Q2 2020."