Maricopa County November Market Update

THE MARKET
BOTTOM LINE: all of the greater Phoenix market remains a hyper seller’s market, with a slight trend back towards the sellers even further. With the low inventory and strong buyer demand (further enhanced by the institutional buyers), upward pressure on prices will continue. Sellers have the upper-hand.

• RECORD SALES PRICES: There was a big jump in average sales price this month, which is now at another all-time high.  The year over year increase is 21%.
  
• INVENTORY SHORTAGE: Nothing new here, but active listings remain unhealthily low with no change in sight for new listings.
  
• NEW CONTRACTS:  This is somewhat surprising, there is no drop off in new contracts like is typical this time of the year. In fact, we are trending upward in new contracts.
  
• SELLERS MARKET: The entire Valley remains a SELLER MARKET. As of today, the Cromford Market Index (CMI) is 356 and trending back towards sellers again. After a few months of little movement, this is not necessarily a welcomed or positive trend. A balanced market of supply vrs demand is a CMI of 100.
  
• CLOSINGS OVER LIST PRICE: This has been slowly declining for the last 4 months which peaked in June at 60%. Currently for November, we are seeing 46% of all homes being sold at OVER list price! The price point with the highest percentage of sales over list price (56%) is $300-400k.
  
• ANNUAL APPRECIATION: With as long as we’ve been in an appreciation spike, it’s hard to believe that we are still seeing a 27% appreciation rate!! This is measured using a monthly average price/sf.
  
• HIGH TRANSACTION VOLUME: This was the 2nd highest volume of any October next to 2020!
  
• RENT RATES:  The latest numbers are in for September 2021, which find that the effective rent across the USA rose 6% year over year. However Phoenix showed the highest rental rate increase of all 63 markets, coming in at 14% higher. This shows why investors are extremely interested in purchasing single-family homes in Phoenix.