Summer Sales Update for McCormick Ranch

With the unprecedented Covid-19 pandemic, the local real estate market has been a whirlwind over the prior 4 months.

2020 started with an incredibly busy February and early March. Then the pandemic hit in full swing in late March and real estate activity just stopped. Sellers did not want potential buyers in their home or to even think about moving. And buyers did not want to enter other homes in fears of spreading the virus.

April remained quiet as well but then something clicked over in May. Perhaps we all got more comfortable with what was coming and what we are still dealing with. Interest rates also plummeted further allowing funds to have more buying power. And, the stock market started its rebound.

In June and July the market got back to full swing. Much like the stock market today, our real estate market is almost saying, "What Pandemic?" Sellers are still not wanting to move but buyers are out in full force scrambling over what is available. Once again, low rates are also part of the catalyst since buying power up.

If we look a little closer we can see how prices are rising. Single family homes have hit their highest 6 month rolling price ever hitting $785,665.

This is also buoyed by home sales over $1,000,000. In the last 60 days we have seen 11 sales over this price point. People are not afraid to pay for well renovated and thought out homes!

It shouldn't be much of a surprise to see that the gains have also extended to the price per square foot. As I've mentioned before, using price per square foot is an awful way to price your individual home but is a good way to see what is happening to the market as a whole.

Single family, condos, and townhomes have all hit highs in price per square foot. Patio homes have been softer but still gaining.

Lastly, days on market has been dropping like a rock thrown off the side of the Grand Canyon. Due to the lack of inventory, homes of all price ranges are being snatched up in days and not months or even weeks. Our current supply of inventory is at just .7 months. So every home currently listed would theoretically sell within 3 weeks. This means we are in a full on seller's market.

As we look forward, it is hard to see this trend stopping any time soon. Maricopa county is the fastest growing county in the country with more than 200 people moving here every day. We are still having transplants from California, the Midwest, and back East. When you sell a multi million dollar home in California, our larger Ranch style homes seem like an absolute steal. I also do not expect rates to rise substantially over the next 6-12 months.

However, if anything, we have also learned that the market can flip on a dime either direction at almost any time. It is hard to predict what may happen in the next 12 months and beyond.

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Yours in McCormick Ranch Real Estate,

Randy Arriola