Phoenix Housing Market: August 2021

Summer is the peak season for real estate sales.  As we approach fall, we are still experiencing a sellers market. However, inventory is increasing slightly, and with that, days on the market as well. It may sound crazy to some, but now is still a great time to buy a home. 

Home values are going to continue to increase, and it’s unlikely interest rates will get much lower in the near future. With that, seasonal changes are also affecting home sales. While bidding wars are not a thing of the past quite yet, some active listings are receiving fewer offers, or staying on the market longer due to their list price. 

All stats below are based on End of Month in June vs July:

Phoenix Housing Market

Supply and Demand: In July, there were 5 weeks worth of housing inventory available, the same amount we saw in June. 
Median days on the market – In July, houses spent an average of 27 days on the market,  a 7% decrease over June when they averaged 29 days on the market.
New homes on the market – In July, there were 11,023 new homes on the market, a slight increase from the 10,943 new homes we saw in June.
Homes sold – In July, 9,141 homes sold, an 11% decrease from June’s 10,207 homes sold.

Inventory held steady at its historically low point in July. There was a slight increase in new listings, however the market remains very competitive as we move into fall. Median days on the market continue to decrease, showing the importance of being prepared to move quickly as a buyer in Phoenix. The average sale price of homes sold in the Phoenix area has increased by 28% since July of 2020. With that, it’s still common to see homes selling for over list price but it’s important to price your home carefully to avoid listing too high.

View current market data

Tucson Housing Market

Tucson continues to mirror the Phoenix real estate market in many ways. Home values have increased by 30% in 2021. New listings are limited, making summer a difficult time to be a buyer. With that, many listings are still seeing multiple offers and buyers continue to waive various contingencies.

Seller Suggestions 

With demand still strong and interest rates remaining low, this seller’s market is here to stay through the fall. However, this doesn’t mean sellers should price their homes without first doing some research. Sellers should price their home to reflect nearby comparative home sales. By doing this, you have a better chance at multiple competitive offers, rather than your home sitting active on the MLS for days or weeks because you listed too high. By enlisting the expertise of a real estate agent you can trust, the process of choosing a list price can feel much less stressful.

Here are a few blogs that might help you as a seller:

• Reasons Why For-Sale-By-Owners Are Not Successful
• How to Reset Your Home’s Days On Market
• Expenses You Can Deduct When Selling a Home

Buyer Suggestions 

Home values continue to rise across the country, and while summer has brought a slight increase in inventory across most markets, buyers still face stiff competition for new listings. The thought of buying a home right now may seem overly competitive and too expensive, but by being prepared and moving quickly, you can win your dream home. If a cash offer is not an option for you, there are other ways to make your offer stand out. Understand your loan options and know what contingencies you’re willing to compromise on. Buyers should also consider homes that have been listed longer than others, as sellers may be ready to accept an asking price or slightly below offer, rather than reducing their list price to the public.

Here are a few blogs that might help you as a buyer: 

• Steps to Buying a House
• Do You Need an Agent to Buy a New Construction House?
• 5 Tips for Millennial Home Buyers

Please note, if you buy with us, we split our buyer’s agent commission with you and give you back up to $6,000, and if you sell with us, we give you comprehensive, expert service for a low flat fee. And keep in mind, especially if you’re moving or you have friends in other states, that Trelora can help you in Atlanta, Charleston, Charlotte, Denver, Phoenix, Raleigh, Seattle, St. Louis and Tucson. In the meantime, please stay healthy and safe.