Summer, much like spring, saw a strong sellers market. Many are wondering if this will continue to be the case even as students return to school this fall. Ultimately, real estate across the country continues to see a highly competitive seller’s market with limited inventory. However, data is beginning to show signs of relief for burnt out buyers in many markets, making this a great time to buy a home.
Sellers continue to have the upper hand in this market. But, after months of seeing home values and median list prices increase exponentially across the country, many areas are seeing home values begin to level off. As we move into the school year, many buyers have put their home search on pause. Thus decreasing the competition amongst new listings and the bidding wars that have previously ensued. So, for the first time in a long time, the data looks promising for hopeful homebuyers.
All stats below are based on End of Month in July vs August:
Phoenix Housing Market
Supply and Demand: In August, there were 6 weeks worth of housing inventory available, a 20% increase from the 5 weeks we saw in July.
Median days on the market – In August, houses spent an average of 27 days on the market, the same amount we saw in July.
New homes on the market – In August, there were 11,037 new homes on the market, a slight increase from the 11,023 new homes we saw in July.
Homes sold – In August, 9,059 homes sold, a marginal decrease from July’s 9,141 homes sold.
Phoenix is an incredibly popular area for workers shifting from office to remote work. Thus, even as we move into fall the market remains highly competitive. Home values have gone up 30% since this time last year, jumping from $276,000 at this time last year, to $360,000 this August. Thus, phoenix homeowners has seen major increases in their home’s equity. With that, homes continue to sell for over list price. However, August sold prices took a slight dip to sell for 1% over list price, versus July’s 2% over list price. As we move further into fall, this trend may continue and provide relief to buyers still searching for the perfect home.
Similar to Phoenix, home values are up drastically in Tucson, increasing by 26.8% over the past year. However, supply is even lower in Tucson with only 4 weeks worth of inventory to choose from. As a result, active listings are still seeing bidding wars from multiple buyers and days on the market remain low. Despite increased home values, Tucson continues to be an affordable market overall and in high demand for workers shifting from office to remote work.
As we approach fall and the weather cools across the country, the real estate market shows signs of cooling in some ways as well. This is still a fantastic time to sell your home and cash in on all time high home values. Homes are beginning to sell for 100% of list price, rather than 2-4% over list price in some markets. As students return to school, many buyers have paused their search. While others have committed to renting for the short term future. As a result, there is less competition for active listings, and fewer buyers competing in bidding wars. Now, more than ever it’s important to consult an expert when pricing your home for sale. New listings are still moving quickly. Median days on the market being under two weeks in most markets across the country. This is important to note for sellers who are experiencing little interest in their listing, you may have priced incorrectly. If this is the case, don’t worry, there are ways to remedy the situation, start by speaking to an expert agent today.
Here are a few blogs that might help you as a seller:
- For Sale By Owner vs Real Estate Agent
- How to Get Your House Ready to Sell
- How Much Commission Does a Realtor Make?
Home values continue to rise across the country, and while summer has brought a slight increase in inventory across most 2021 has proved an incredibly challenging time to be a home buyer. However, new resources are becoming available for buyers to make their offer more competitive. Trelora uses technology to help buyers craft instant offers, backed by cash from our brand partners. Curious if this is an option for you? Speak with a Trelora agent today to learn more. With that, August has shown that there may be a light at the end of the tunnel. Many markets across the country saw a dip in median home prices, even as supply increased in some areas. Overall, the number of showings per listing also decreased. Homebuyers who are serious about finding a home in this seller’s market can prepare themselves by partnering with an expert agent who is knowledgeable in their desired neighborhood. By having a list of non negotiables you seek in a new home, you can search new listings quickly or revisit older listings that may be open to asking price offers after sitting on the market for a period of time.
Here are a few blogs that might help you as a buyer:
- What to Look for When Buying a House
- Is Now a Good Time to Buy a House?
- How to Calculate Closing Costs
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.