35.2% of Homes Sold In Phoenix this Month, Sold for Over List Price
Once again, here is our table of Cromford® Market Index* values for the single-family markets in the 17 largest cities as of August 20, 2020.
The number of red dots has doubled since last week with Tempe joining Maricopa as a cooling market. They remain extremely hot, so the cooling is barely perceptible on the ground.
We expect the number of red dots to increase to 4 by next week, with Avondale and Glendale adding to the cooling markets.
Meanwhile, the average increase in the Cromford Market Index (CMI) is still a strong 15.4% over the last month and the more expensive areas are having their turn in the spotlight. We can see Fountain Hills, Scottsdale, Cave Creek and Paradise Valley all moving strongly in a direction favorable to sellers. The Southwest valley (Buckeye & Goodyear) is also doing well along with the Northwest in the shape of Surprise & Peoria.
With new listings coming quite fast over the last month, Phoenix and the Southeast Valley are seeing their CMI readings rise at a slower pace. However they remain extraordinarily high by any historic standard.
As we enter Week 35 of 2020...below is a recap of Week 34 (August 16th-August 20th):
Employment
Initial claims (newly unemployed) for unemployment insurance has been dropping rapidly since July 11th.
Labor Force is Down 1.4%
Year-Over-Year Income Growth is 4.4%
Forbearance
Conventional Loans in Forbearance Continues to Decline
Closing Over Asking Price
35.2% of Closings in August Closed for Over List Price
Highest Number of Closing Over List Price was Between $300K-$400K (682)
Highest Percentages of Closing Over List Price was Between $200K-$250K (50.6%)
Sales of Homes Under $200K to 400K the Median Amount Over Asking Price was $5,100
With interest rates at historic lows, population growth in the valley out pacing new home construction, companies moving into the valley and high income buyers relocating here, it is projected that Phoenix will continue to see a strong housing market at least over the next 12 months.
If you are considering buying or are interested in finding out what your home is worth...call, text or email us. We are alway here to help you with your real estate needs.
*Cromford Market Index™ is a value that provides a short term forecast for the balance of the market. It is derived from the trends in pending, active and sold listings compared with historical data over the previous four years. Values below 100 indicate a buyer's market, while values above 100 indicate a seller's market. A value of 100 indicates a balanced market.
