{"id":1054,"date":"2020-04-01T20:31:47","date_gmt":"2020-04-01T20:31:47","guid":{"rendered":"https:\/\/nohasslelistingblog.com\/?p=1054"},"modified":"2020-04-01T20:31:47","modified_gmt":"2020-04-01T20:31:47","slug":"officially-a-frenzy-11-more-contracts-than-listings-for-sale-contracts-over-1m-up-60-over-last-year","status":"publish","type":"post","link":"https:\/\/nohasslelistingblog.com\/?p=1054","title":{"rendered":"Officially a Frenzy: 11% More Contracts Than Listings For Sale Contracts Over $1M Up 60% Over Last Year"},"content":{"rendered":"

The COVID -19 virus and the housing market are squaring off.\u00a0 It is early in the fight, so we are loathe to predict too much at this point.\u00a0 In our 42 \"\"years of practicing Phoenix real estate in all its iterations – a pandemic virus is one we haven\u2019t lived through.\u00a0 But \u201cdisasters\u201d whether war or terrorism or a housing bubble – all have one thing in common.\u00a0 They do not survive long term.\u00a0 So really, what is the worst case?\u00a0 Demand drops until the virus abates or is medically solved (vaccines, medication etc.) Demand can only be suppressed for so long.\u00a0 In the long run, the basic needs of man \u2013 food and shelter, always prevail.<\/p>\n

Given how strikingly low the valley\u2019s housing supply is \u2013 our market has the potential to weather a significant drop in demand.\u00a0 Let\u2019s look to the Tina Tambour of the Cromford Report for some interesting statistics.\u00a0 Tina points out the number of active homes for sale is running chronically below the number that have contracts on them \u2013 i.e. the active supply is being gobbled up by contracts:<\/p>\n

\u201cFor every 100 active listings in the Arizona Regional MLS there are 111 that are already under contract.\u00a0 Greater Phoenix is officially a frenzy and it\u2019s only March.\u00a0 We can expect to see this continue at least through May without relief as buyer demand is typically highest in the Spring.<\/p>\n

It\u2019s even more dramatic in the Southeast Valley, West Valley and North Phoenix and all areas where prices land between $175K-$300K.\u00a0 For a stark example, on March 7th in Glendale there were 3 properties for sale between $175K-$200K and 25 under contract.\u00a0 In Chandler there were 3 properties active between $200K-$250K and 37 under contract.\u00a0 In the North Phoenix Moon Valley area there were 8 properties for sale between $250K-$300K and 30 under contract.<\/p>\n

There is a reason why people continue to pounce on what\u2019s available for sale.\u00a0 The average price for a 1,500-2,000sf home is now $331K and continues to rise.\u00a0 That may seem alarming considering it was $324K at the peak in 2006, but contrary to popular belief it\u2019s more affordable today because of the interest rates.\u00a0 In April 2006, with an average of 6.51% the monthly principle and interest payment on a 30-year fixed loan with 10% down was $1,854.\u00a0 Today at an average of 3.45% the same home is $1,331, a savings of $523. More recently, over the last 16 months despite prices having risen 9.4% for median-sized homes the monthly payment dropped by approximately $112\/month.\u201d<\/p>\n

In short, whatever the impact to the market \u2013 we will keep you informed.\u00a0 We would urge you to not be overly concerned at this point.\u00a0 We have one of the strongest housing markets in the country and any change to that would be a temporary one.\u00a0 This too shall pass.<\/p>\n","protected":false},"excerpt":{"rendered":"

The COVID -19 virus and the housing market are squaring off.\u00a0 It is early in the fight, so we are loathe to predict too much at this point.\u00a0 In our 42 years of practicing Phoenix real estate in all its iterations – a pandemic virus is one we haven\u2019t lived through.\u00a0 But \u201cdisasters\u201d whether war […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-1054","post","type-post","status-publish","format-standard","hentry","category-the-economy"],"_links":{"self":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1054","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1054"}],"version-history":[{"count":2,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1054\/revisions"}],"predecessor-version":[{"id":1057,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1054\/revisions\/1057"}],"wp:attachment":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1054"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1054"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}