Market Update – February 2021

Here are the basics – February 1, 2021 compared with February 1, 2020 all areas & types:

• Active Listings (excluding UCB & CCBS): 5,180 versus 11,974 last year – down 56.7% – and down 14.5% from 6,055 last month
• Active Listings (including UCB & CCBS): 9,727 versus 16,035 last year – down 39.3% – and down 0.6% compared with 9,788 last month
• Pending Listings: 7,070 versus 5,969 last year – up 18.4% – and up 15.2% from 6,135 last month
• Under Contract Listings (including Pending, CCBS & UCB): 11,617 versus 10,030 last year – up 15.8% – and up 17.7% from 9,868 last month
• Monthly Sales: 7,330 versus 6,464 last year – up 13.4% – but down 26.8% from 10,015 last month
• Monthly Average Sales Price per Sq. Ft.: $217.59 versus $182.18 last year – up 19.4% – and up 2.9% from $211.50 last month
• Monthly Median Sales Price: $339,000 versus $289,900 last year – up 16.9% – and up 2.1% from $332,000 last month

You might have been hearing rumblings that this market is crazy, and those rumblings are right. It is a little nutty to say the least, but we are here to help you understand exactly what is happening.

As you may have noticed, this market very different than it has been in past years. In our pre-COVID days we would have expected to see a typical increase in listings in the month of January. Unfortunately, that did not happen this year. The number of new listings in January was the weakest on record, and, while demand softened a bit, it was still strong enough to absorb the low amount of listings that entered the market.

Supply hit an all-time low in January, surpassing the former record holding year of 2005, but appreciation is still trending up. In fact, appreciation has already surpassed 19% and is projected to reach 30% by the end of the 2nd quarter of 2021.

What does this mean for you as a seller? Well, as we have said before, it means that NOW is a great time to sell IF you have a plan in place for where to go once your sale is complete. Knowing that it is a great time to sell might make you think that now is not a good time to buy; however, that thinking would actually be incorrect. While interest rates are slightly rising, they are still very low and real estate is still appreciating. This means that NOW is also a great time to buy!

If you are looking to buy in this market, we highly suggest you reach out to us and our team of professional agents. While it is still a good time to buy, that doesn’t mean that it is an easy time to buy. You will benefit from the knowledge and connections our agents have now more than ever!

If you are looking to sell your home, we would be happy to help you determine the current value of your home in this crazy market. By using a seasoned REALTOR®, we can help you price your property appropriately to maximize it’s value. We can also help you determine which offers are the best offers and what to do in situations that might arise such as lagging appraisals.

If you are ready to buy or sell in Phoenix, Scottsdale, Paradise Valley, Cave Creek, Carefree, Chandler, Mesa, Gilbert, Peoria, Glendale, Avondale, Sun City or any of the surrounding areas, or if you just want more information on the current real estate market, please reach out to us at info@azarchitecture.com. We are happy to help!