September sales update for McCormick Ranch

Late summer in Scottsdale and Phoenix real estate is usually marked by a bit of a slow down. We are all sluggish from the heat and in the full back-to-school swing of things. We normally see the number of home sales dip a bit, prices remain flat, and have a little bit of a lull in the market.

This past August, we definitely saw some of that. McCormick Ranch saw just 39 homes sell in August, compared to 55 in July. August 2018 saw 32 homes sell and so we were still up substantially over that. But prices have continued to rise.

Inventory numbers have remained extremely low and the late Summer season has done little to change this. At the beginning of the month, there were just 63 homes, condos, or townhomes available for sale. We have averaged around 100 homes for sale over the past year, so this is a dramatic difference. We are still in a full on seller's market with just 1.6 months of inventory.

With very little inventory, buyers are either having to wait on the side to find the right home or snatch up what comes onto the market right away. So, recent sales may be even higher if there were more available homes.

Home prices have continued their notch up in price over the past month. We're seeing annualized gains of around 5% from this time last year for single family homes. Price per square foot for condos, townhomes, and patio homes are also up around 5%, but pure sale prices are relatively flat.

At the start of the month we had 41 homes under contract in McCormick Ranch. I expect around 35 of these to actually close in September. This is fairly close to our 32 closings in September 2018.

We usually see inventory start to climb in the Fall. However, we will likely remain in a strong seller's market even with a substantial increase.

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Yours in real estate,

Randy