By Chad Arend, The Arend Team
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 fourth 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 three months have recorded over asking price.
Seller-paid closing cost concessions are also down. Nearly 22% of all sales in the first quarter to date have included some form of seller-paid or assisted closing costs – that’s the lowest percentage recorded in nearly five years.
The luxury market continues to go gangbusters in 2020. Sales over $1 million in 2019 outperformed 2018 by 10%, which makes it the number one year in Greater Phoenix in this price range. January closings were up 52% in this price range, 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 8-9% for Greater Phoenix as a whole.
The Arend Team strives to be on the forefront of the local real estate market and provide the best service and response time to long-time clients and new customers alike. We keep on the forefront of technology, yet also keep tried and true methods. Our industry skills include aggressive negotiation tactics, local knowledge, always update-to-date contract knowledge, premier marketing tools and a strong support staff. We always assure every client involved in the real estate transaction is “kept-in-the-know” on each aspect of the buying or selling process. Our goal is to make sure we maintain a true “clients first” attitude towards all aspects of our business.