The real estate markets in Ahwatukee Foothills and the rest of the Phoenix Metro region have been hot for months.
Prices have climbed higher and higher and buyer demand has kept inventories of listed properties well below levels that met buyer demand. We have been experiencing a very strong and extended seller’s market.
Many have started to ask how long it could continue and many have predicted a slowing in the national and local real estate markets. Until recently, there have been no signs or reports of slowing in most markets.
Recently, some reports have indicated that sales are slowing, inventories are rising and prices may be coming down.
Despite these recent reports, our most recent Ahwatukee Foothills real estate update tells a different story.
The early June Ahwatukee home inventory is at historic lows. Active listings in Ahwatukee totaled 27 units as of late last week.
More Ahwatukee homes were sold in May of this year than in May 2020 and prices are up dramatically, our analysis found.
Despite reports of supply increasing and demand falling in the regional market, we are seeing the opposite in Ahwatukee.
The June 1 real estate sales snapshot for Ahwatukee-Foothills shows that the May average sale price rose to $543,297 – up 38.8 percent over the average price in 2020 of $391,152.
The number of units sold last month was up 37.3 percent with 184 units versus the 134 sold in May 2020.
Buyers are continuing to step up with higher offers over the asking price to get prime properties. As a result, the number of May 2021 listings that required a price reduction to get an offer declined to 37 units – 20 percent of the closed listings.
Historically, about 40 percent of properties require a price reduction to get a sale.
Moving from the monthly snapshot to the bigger picture, in the Jan. 1-May 31 time frame, the year-to-date average Ahwatukee sale price was $406,531 – up 3.3 percent over the same period in 2020, when the average sale price was $393,249.
The 787 units sold in the first five months of this year exceeded the 592 units sold in the first five months of last year – meaning that so far units sold has outpaced 2020 by 32.9 percent.
Many frustrated buyers are looking for homes in Ahwatukee. The lack of listing inventory is pushing prices steadily upward as many, if not most buyers, make offers over the asking price, anticipating multiple offers on many properties.
We always encourage home sellers to price their properties realistically. However, in the current market, we are seeing sellers price their properties above the comparable sales values and still receive multiple offers and offers over the asking price.
In this market, it is reasonable and permissible to list a property over recent comparable sales to test the market. While not always our advice, it is a prudent consideration in this overheated market. Always keep in mind that the property will usually have to appraise if the buyer is applying for a loan.
There were 37 sales over $1 million in Ahwatukee in the first five months of this year with an average sale price of $1,493,451. They were on the market an average of 101 days and 22 percent required a price reduction to get a sale.
The high sale, at $3 million, was in Tapestry Canyon and it was on the market for 53 days. As of last week, there were eight active listings for seven-figure properties in Ahwatukee.
Here are how sales performed in the first five months of this year in various price brackets:
• $600,000-$999,999: 104 sales with an average sale price of $724,218 and an average 28 days on the market.
• $500,000-$599,000: 37 sales at an average $557,814 and average marketing time of 31 days.
• $400,000-$499,000: 210 sales at an average $451,438 and average 24 days on the market.
• $300,000-$399,000: 211 sales at an average $363,894 and 22 days on the market.
• Under $300,000: 117 sales at an average $246,388 and 22 days on the market.
As expected, the number of days on the market increased as the price point increased.
As we have previously reported, the local economic outlook continues to be strong. Phoenix is ranked number three in the country in job creation. Interest rates are low.
Intel announced in early March that they are constructing two new plants in Chandler. The plants are expected to create 3,000 new high-paying jobs. Demand is high and increasing, for homes in the Phoenix and Ahwatukee real estate market as the local economy expands.
Metro Phoenix has always been a mecca for folks seeking the retirement lifestyle and now we are seeing a steady influx of people moving from California to enjoy the lower cost of living.
Of course, the political situation is always a wild card as Washington’s policies spark social unrest and cause inflationary pressures. Lumber prices are at record highs. Supply chain pressures and disruptions threaten to upset the economic balance.
But still, there has never been a better time to sell an Ahwatukee property for a great price and quickly. However, we have to acknowledge there are forces at play that have the potential to put downward pressure on property prices.
In the short term, it is probable that rising real estate prices will be the single biggest factor in slowing down the real estate market. As prices increase, many buyers will be priced out of the market, demand will fall, supply will increase and prices will drop. We are not seeing this currently in the Ahwatukee real estate market but the potential exists.
For a free professional consultation to help you determine what needs to be done to make your home shine and the best strategy to get it sold for top dollar: Henderson Real Estate , 480-392-2090, firstname.lastname@example.org ′