Phoenix Market Pulse: July 2021

As we move into summer, we’re seeing a slight seasonal shift in the housing market across the country. Demand still remains greater than supply, and many sellers continue to have the upper hand in this market. However, as more homes hit the market, the ability to get under contract is becoming more realistic for hopeful buyers. 

June is an important time for the real estate market as it typically defines the trends we’ll see throughout the summer. Median home prices continue to rise across most markets and days on the market remain consistently low. Many homes continue to sell for over list price, however we’re beginning to see fewer offers in bidding wars. June saw an increase in listings that is likely seasonal, but could offer some relief for buyers. 

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

Phoenix

Supply and Demand: In June, there were 5 weeks worth of housing inventory available, a 66% increase from the 3 weeks we saw in May. 
Median days on the market – In June, houses spent an average of 29 days on the market, the same average we saw in May.
New homes on the market – In June, there were 10,943 new homes on the market, a 4% reduction from the 11,308 new homes we saw in May.
Homes sold – In June, 10,207 homes sold, a slight increase from May’s 10,198 homes sold.

Phoenix area median sale price has increased by 4.3% since May. Area home values are projected to continue to rise throughout the summer months. This is largely due to the limited supply of active listings, leading to bidding wars for many listings and buyers continuously facing burnout.

Tucson

The Tucson real estate market is similar to the Phoenix area as both locations are experiencing a shortage of active listings. Thus, being a buyer in this market is difficult regardless of where you are in Arizona. In June 2021, the median list price of homes in Tucson was $289,900. This is a 20.8% year-over-year increase in price. This area will continue to experience a sellers market throughout the coming months as demand outpaces supply.

View current market data

Seller Suggestions 

Now, more than ever it’s important to price your home correctly. While many homes are still selling for over list price, this doesn’t mean you shouldn’t choose wisely when pricing your home. Median days on the market remain low, with the prime time to list your home being a Thursday to allow for weekend showings. Sellers should adjust their listing strategy to reflect nearby comparative home sales. If you list your home too high, you risk not selling as quickly as nearby listings. Then, showing activity decreases and so do the odds of an asking price (or higher) offer. 

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

• Questions to Ask When Selling a House
• How Much Does it Cost to List on the MLS?
• What if the Appraisal Comes in Low?

Buyer Suggestions 

While being a buyer has been an exhausting process in 2021, more houses are beginning to hit the market as summer is the peak season for inventory. For the first time in months, buyers are facing less competition for active listings. This doesn’t mean bidding wars are going away completely, instead buyers are competing with 3-5 offers, rather than 15-20. Home values are holding strong, which means buyers who are able to secure a home are rewarded in equity. Ultimately, things are looking up for potential homebuyers. Our advice is to be prepared with financing, get creative with the contingencies of your offer, and don’t give up. 

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

• How to Buy a New Construction Home
• Can I Buy a House with No Money Down?
• What is Due Dilligence in Real Estate?

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.