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    • Valley’s Real Estate Update for February 2020

    Valley’s Real Estate Update for February 2020

    Phoenix Metro Residential Real Estate

    Annual Changes from February 6th, 2019 to February 6th, 2020



    MLS Luxury Sales Over $1M Up 52% in January


    Supply Between $200K-$250K Down 60%

    For Buyers:
    Supply continues to drop as the market heats up with the seasonal rush of Buyers. Typically we would see
    supply rising at this time of year as January is a strong month for new listings to hit the market. However this
    year new listings year-to-date are down 17% from last year and January 2020 had the lowest number of new
    listings recorded going all the way back to 2001. Combine this with a 21% increase in sales volume and the
    4th highest January recorded for MLS sales, and it’s no surprise that supply is plummeting.
    While supply is down in all price points, it’s felt the most between $200K-$250K. Supply in this price range is
    nearly 60% lower than this time last year and a quarter of sales in the last 3 months have recorded over asking price.
    Seller-paid closing cost concessions are also down. Nearly 22% of all sales in the 1st Quarter to date have included some form of seller-paid or assisted closing costs. That’s the lowest percentage recorded in nearly 5 years.


    For Sellers:
    The luxury market continues to go gangbusters in 2020. Sales over $1 Million in 2019 outperformed 2018 by
    10%, which makes it the #1 year for in Greater Phoenix in this price range. January closings were up 52% in
    this price and listings under contract are up 43%.
    With all this demand, one would think price appreciation would be rising significantly however that hasn’t
    happened yet. The average sales price per square foot between $1M-$2M has only appreciated 1% while
    those between $2M-$3M have appreciated 0.2% and those over $3M have increased 6%. The current appreciation rate per square foot is between 8-9% for Greater Phoenix as a whole.


    Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report
    ©2020 Cromford Associates LLC and Tamboer Consulting LLC


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