Welcome to the last quarter of 2020 and a year we won’t soon forget but probably want to leave behind! At Newman Realty, we are starting the final push of the year and gearing up for what 2021 will bring. When it comes to the Arizona housing update, it is quite similar to the last one; there is a lot of demand and little inventory.
We are grateful to our clients who put their trust in us to represent your interests. It was an unusual year and we appreciate your business!
Arizona Housing Market Update: More of the Same
The Gilbert area housing market has remained active with much of the same when it comes to high demand and low inventory. We’ve seen an influx of out of state families moving here which has pushed demand even higher and most homes are selling quickly.
Case in point: We recently listed a property in Kensington Estates in Gilbert. Normally we would prepare professional media for the listing, market the home as coming soon for a couple of days, then hit the market on a Thursday, with open houses Saturday and Sunday.
In today’s market, if the home shows well and is priced well, then chances are the seller will be reviewing multiple offers that Monday. In this case the seller preference was to list as soon as media was ready, not have a yard sign or open houses. Media came back Saturday morning and the listing was activated at 11:00am. By Sunday evening, the next day, we had 11 showings and three offers! All offers will above asking price and one had an escalation clause to take it up to $15,000 above asking price. In the end the seller had to decide between two very good offers, each about $10,000 above asking price.
This is not an unusual scenario these days. Buyers have to be creative AND aggressive in their offer strategies if they are going to secure a property in this competitive market. Since January 1, 2020 Mickie and I have had the pleasure of representing 14 sellers of property in our local market. Eight sold in less than seven days and average days on market was 29 (some properties listed right at the stay at home order stayed on market for longer). 10 listing sold for above asking price.
Despite the pandemic that has caused so much disruption for everyone, and a Stay at Home Order from the Governor’s office for part of April and most of May, economic turmoil, social unrest, and a contentious election year, despite all of that the Arizona housing market has remained active, competitive and strong. Values are going up. Builders can’t build new homes fast enough and existing homes sell quickly. This full head of steam is heading right into election night in just under 30 days.
What comes next for the Arizona housing market?
For years we have had some predictable cycles in the Arizona housing market. Families move in the summer, so more family-sized homes sell in the spring, winter visitors arrive in November and start shopping for housing right after the holidays, Halloween to New Year’s Eve is usually a slower time for home sales. Right now, there is no sign of a slowdown for the holidays.
We never truly know what is to come in any market.
The financial collapse of 2007-2008 came up pretty fast and through a fast-moving housing market right off the tracks. We know that values cannot continue to go up unabated forever, at some point there is always a correction. I would have guessed that correction would have come during April-May but it really didn’t. New arrivals to the state of Arizona and record low interest rates seemed to have overcome any damage the economy or employment may have caused. Long term it will be interesting to see how this plays out but until migration slows up, demand for housing in Arizona will likely leave sellers in the driver seat. Keep an eye on local business performance and local unemployment numbers, those indicators will likely precede any correction in housing markets.
Remember that we are local experts in real estate, we are your trusted advisors and counsel with 16 years in the local market and dozens of great online reviews. We are always available to assist you if you, or someone you know, has questions or is interested in making a move. We offer free consultations and outstanding service. Please know you can refer your friends and family with
– Mark Newman, Newman Realty, Gilbert, Arizona