Talking about the 2020 real estate market causes even seasoned agents who survived 2005 to run up to shake their heads.
This is truly a year that feels like “there is nothing for sale”. While listings coming to market are lower than last year’s numbers, the truth of the matter is that 30,343 new listings came to market between July and September. (source: Tina Tambour, Cromford Report) The fact is that demand has so outpaced supply that very few listings last on the market for even a week. In fact over half the listings in the 3rd quarter were active only 9 days or less prior to contract. And most of those had multiple offers – thereby lengthening the time on the market just to field all the offers.
Unbalanced markets make for unbalanced emotions for agents and their clients alike. Many a buyer, after losing home after home, is tempted to step to the sidelines for a more favorable buyer market. Unfortunately for those buyers, stepping to the sidelines is not a great solution. The median sales price is up 18% since last October with the bulk of the appreciation occurring in the last 4 months. As this strong appreciation in pricing continues, it will eventually dampen demand and increase supply. But at that point, buyers will be paying more for the same home months earlier.
To quote Tina: “As exhausting and stressful as it is for buyers and their agents, supply and demand measures indicate prices in Greater Phoenix will continue to rise well into 2021. Hopefully, the short-term pain will lead to long-term gain for those who ultimately win a successful contract.”