At the start of June, there were 66 homes under contract in McCormick Ranch. Surprisingly, only 47 of these closed throughout June. I expected the number to be closer to 60 as homes often close within 30 days. What happened to the rest? My best guess is that many of the closings were pushed back to July. A handful likely fell out of contract or just needed more time.
Starting in July we have 53 homes under contract and only 96 homes available. Inventory is still very scarce and these homes are moving quickly. Days on the market is still trending downward and all of the types of homes are selling faster than 12 months ago. With a lack of supply of homes, I do expect this trend to continue. If you like a home, be prepared to move on it right away!
There has been a huge buying spree throughout Phoenix recently due to lower interest rates. 30 year rates are often below 4%, a range not seen over the last few years. Thus, buying power goes further and the pre-approval buying range can go up.
Looking specifically at McCormick Ranch, we saw this big push throughout the spring. Part of this was seasonality and part was also due to decreasing interest rates.
While average prices have shown a little bit of a decrease, I'm still considering this to be statistical noise due to a smaller data set. We're seeing price/square foot increase slightly, and I feel this is a better sense of the market as a whole (but still an awful way to value your individual home).
Price per square foot is up about 3-5% for most of the categories, with the exception of single family. Single family is showing a massive 10% gain but I do expect this to flatten out over the next few months.
With the summer now in full swing we can usually expect sales to dip. But with the low interest rates I feel that we will be a little more insulated from this dip than normal.
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The end of the school year generally marks the beginning of the stale selling season. Summer is in full swing, and although the temperature has been fairly moderate recently, the intense summer heat is just around the corner. While much of the country uses this time of the year to change schools and move to a new home, the thought of moving in 100+ degree temps here just makes everyone shudder.
However, we aren't quite there. May sales were still strong and the spring selling season was in full swing.
There were 61 homes in McCormick Ranch that changed owners last month. On my previous sales update post, I expected that 60 homes would sell so this is right in line.
This is a slightly higher number compared to previous years so we are still making up for a soft 1st quarter sales.
May 2016: 48 sales
May 2017: 45 sales
May 2018: 57 sales
With the uptick in sales, prices per square foot were flat or even slightly down compared to the prior month. However, the long term trend has still been upward so this doesn't mean a whole lot right now.
Homes are still moving extremely fast, and selection is very limited. This has a chance to push prices up over the coming months. Days on market is between 50 and 68 depending on the type of home. This is historically very low.
For June, we start the month with 66 homes under contract and only 93 active listings. I'd expect 60-65 of these to close by the end of the month. This would be another very busy month.
At 93 active listings, we are only showing around 1.5 months of inventory. This could also put some more short term pressure on prices.
Looking ahead, there could be a couple of interesting economical facets that affect local sales.
First, interest rates have absolutely plummeted over the last month. 30 year mortgage rates are once again around 4%. Lower mortgage rates result in a lower payment and a higher borrowing ability. This can increase home prices.
On the flip side, the trade war is back in full swing and many economists aren't as giddy about the future aspects of the economy. This can take a longer time to affect home sales but we cannot discount it even in the short term.
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Have a great June!
-Randy
We're back to one of my favorite times of year. School is almost out, pool season is upon us, and Restaurant Week is here!
All of the participating places have a 3 course meal at a fixed price of $33 or $44 per person (tax, gratuity, and cocktails are usually extra). Some are also $44/couple. It begins on Friday, May 17th and runs through Sunday, May 26th.
There are around 100 restaurants in all participating. While it would be impossible to highlight them all, here are the ones in and around McCormick Ranch, Gainey Ranch, and Scottsdale Ranch
Ajo Als: 9393 N 90th St, 85258: Ajo Als has been a staple for Mexican Food in the area. At just $44/couple (including cocktails!), you'll get your fill at a great price.
Alto: 7500 E Doubletree Ranch Rd, 85258: Located inside the Hyatt Regency, Alto is an Italian Restaurant known for their wine and wine pairings. $44/person.
Crust: 8300 N Hayden Rd, 85258: A newcomer to McCormick Ranch, Crust features phenomenal pizza and Italian food. Their spicy garlic knots are killer! $33/person
Famous 48: 8989 N Scottsdale, 85253: This is another new restaurant to our area that features American style food. $33/person
Grassroots Kitchen And Tap: 8120 N Hayden Rd, 85258: Since 2011, Grassroots has always cast a spell on us. They offer great food with a southern flair and fantastic cocktails. If you can't make it during Restaurant Week, go back during happy hour. $33/person
Ling & Louie's: 9397 E Shea, 85260: If you want an American-Asian fusion, this is the place to come. $33/person
Roka Akor: 7299 N Scottsdale Rd, 85258: Roka Akor has made a great name for itself as the upscale Asian cuisine. $44/person.
Soi 4: 8787 N Scottsdale Rd, 85253: This is one of the great Thai restaurants in the area. $33/person.
Twisted Grove: 8220 N Hayden Rd, 85258 Run by the same owners at Grassroots, this is another exceptional place to dine at in McCormick Ranch. They create upscale American cuisine at a very reasonable price. $33/person
