March sales update for McCormick Ranch

Spring training in Scottsdale usually marks the beginning of the busy season for the entire Phoenix area. This is just as true for McCormick Ranch as ever before.

However, we're starting with incredibly low inventory and it is greatly affecting our local market. With very low inventory, homes are selling faster and at a higher price.

At the start of February, 53 homes were available. There were 50 total sales in February. And, now at this writing, there are only 45 homes available. This means that the absorption rate is just .9 months. If we did not see any new homes listed, the current inventory would last less than a month.

In all of my time keeping statistics for McCormick Ranch, I have never seen it this low. This is even more interesting because this encompasses homes over $1,000,000, which has been the softer side of real estate over the past few years. There is a larger demand for quality renovations now than ever before.

Price per square foot is my favored metric of a smaller market like McCormick Ranch. You can see that all categories are rising between 4 and 7%.

With the extremely low inventory, it only seems plausible that prices will continue to go up over the spring. Interest rates have dropped again to historic lows, meaning a buyer's purchasing power will rise.

All this being said, it's a great time to be a seller. That is, as long as you can find a new home!