July Sales Update for McCormick Ranch

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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