AZ Housing Market Closing Out 2020 Strong!
There were 10,075 completed sales recorded for single-family and townhouse / condo properties. This is up 15% from November 2019. It is down 10.9% from October, but this is due to the large difference in the number of working days. October 2020 had 22 working days while November had only 18. The difference is over 18%, so November actually saw more closings per working day.
Re-sales were up 17% from a year earlier, while new home sales only rose by 5.5%
The median sales price drifted down to $340,940 from $342,000 in October, but is still up 15.4% from this time last year. Looking exclusively at re-sales, the median sales price was flat between October and November at $335,000. However it was up almost 20% from $280,000 in November 2019.
The new home median dropped 1.2% to $374,490 but was up 5.5% from $354,990 in November 2019.
Below is our latest table of Cromford® Market Index (CMI) values for the single-family markets in the 17 largest cities.(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.)
The CMI is gaining ground with an average increase of 7.5% over the last month, mostly due to supply declining still further. We have 4 cities moving a little in the opposite direction, including Avondale who has relinquished the top spot to Gilbert. We note that 3 of the cheapest cities (Maricopa, Surprise & Avondale) and the most expensive by far (Paradise Valley) were the ones that saw a slight decline. The mid range and the lower end of the luxury market are seeing rampant demand which quickly soaks up any supply that manages to squeeze itself onto the market.
Gilbert moved up 20% and Queen Creek, Scottsdale, Tempe, Chandler and Fountain Hills all saw supply drop sharply over the last month. With 15 cities over 300, this market is the most favorable for sellers that we have ever seen.
Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report
©2020 Cromford Associates LLC and Tamboer Consulting LLC