McCormick Ranch Sales Update: April 2021

As we move through the start of Spring, the housing market and our temperatures are rising at the same pace. Quickly!

April marks the middle of what is our busy season for the year. Sales prices tend to have their annual rise for the year all between January and June. Then, the later six months tend to be flat.

We're definitely seeing those same gains as there has been a huge uptick since January 2021. In fact, the average sales price is up $120,000 since then. This is for a 6 month rolling average but this is skewed to a certain degree. We have seen multiple homes above $2,000,000 which definitely aren't normal. I do expect this to flatten out as we get further sales.

What is normal are $1,000,000 sales now in McCormick Ranch. So far this year, there have been 22 sales above $1,000,000. Last year at this time there were only 9. There are also another 14 homes under contract with list prices at $1,000,000 or above.

Patio homes and townhomes have been converging on one another. There is a lot of gray area with how they are listings and classified so this doesn't surprise me too much. We've seen this at times in the past.

As you'd expect, the run up in sales prices also correlates to a run up in price per square foot. All price per square foot metrics are up between 16% and 26% from the start of 2020. This is substantial!

The number of sales has also been staying strong. We started see the first hits in the armor in March of 2020. Some contracts were canceled due to the first round of shut downs and this was the start of a lull in the market. Obviously it didn't last long! There were just 48 sales in March 2020 compared with 63 this year.

April, May, and beyond are looking to be well above last year's numbers.

The market as a whole has gone up around 20% over the past year due to limited supply, a boatload of demand, and low rates. As we move forward, I'm still expecting strength and gains over the next 6-12 months, if not more. There is a backlog of demand. Buyers are losing out on homes due to multiple offers and still waiting for their next home to come up. We have such a limited amount of homes in Phoenix, Scottsdale, and McCormick Ranch that it will not be an instantaneous change without some sort of an extreme catalyst.

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Yours in McCormick Ranch Real Estate,

Randy Arriola, HomeSmart