There are just not enough homes to buy for the people who want them 🤔

Dated: December 1 2020

Views: 124

We now have just 27.8 days of inventory across all ARMLS areas & types. That is less than 4 weeks. A normal balanced market would be expected to have between 120 and 150 days of inventory. For buyers, this means most decently priced and affordable listings will be under contract within days if not hours of hitting the market.

It also means what is still available on the MLS is mostly unaffordable to the majority of potential buyers. This is obvious from the average list price, which is way above what most people would expect to pay for a home in the area.

Here are some examples of single-family detached homes:

Paradise Valley - $4,269,814
Scottsdale - $1,986,268
Fountain Hills = $1,191,397
Cave Creek - $1,141,853
Gold Canyon - $823,082
Chandler - $720,865
Anthem - $676,483
Phoenix - $673,757
Gilbert - $665,072
Mesa - $613,602
Litchfield Park - $570,702
Queen Creek - $566,637
Peoria - $553,516
Tempe - $551,160
Buckeye - $477,365
Apache Junction - $453,180
Glendale - $445,598
Surprise - $439,235
Goodyear - $433,937
Sun Lakes - $421,418
Laveen - $395,686
Avondale - $356,111
Tolleson - $348,987
Sun City West - $341,342
Casa Grande - $318,329
Maricopa - $316,943
Sun City - $303,936
El Mirage - $280,075
Arizona City - $224,721

These are all much higher than they were a year ago and it is not because high-end homes are piling up - the top end of the market is seeing unprecedented demand.

We have been short of supply since 2015 and the situation has become steadily more severe. There are just not enough homes to buy for people who want them. Millennials who continued to rent long after earlier generations are now anxious to get their foot on the ladder. Investors are back in volume having taken a pause during the second quarter. However, unlike 2004, investors remain a relatively small part of the demand. Most of the people buying homes are doing so because they want a primary residence.

During October the intended use for single-family and condo/townhouse properties in Maricopa and Pinal counties was as follows:

Owner-occupied primary residence - 77.3%
Investment - 12.2%
Owner-occupied secondary residence - 8.6%
iBuyer for re-sale - 1.6%
Unknown - 0.3%

©2020 Cromford Associates LLC and Tamboer Consulting LLC

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Josh Marquez

We aim to serve our clients by providing our team members and agents with the highest technological platforms available in our industry to bring positive result and the best experience in the process ....

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