McCormick Ranch Sales update: December 2020

We are now recovering from the turkey coma and full swing into Holiday season. Lights are going up all around McCormick Ranch, the air is getting a little crisper yet the days are still beautiful. We are in the prime season for what makes Arizona so great.

As we examine the real estate market through Phoenix and McCormick Ranch in the 4th quarter, we usually see a bit of a seasonal slow down. It isn't uncommon to only have 30-35 sales a month as everyone focuses on family celebrations instead of family moving. Yet, as we have seen throughout the year, this season is anything but normal. There were 52 this past November putting us around a 50% increase in pure sales. You can see the regular dips in the second half of the year in the chart below.

Sales prices continue to stay strong. In fact, the average single family home has now sold for $130,000 than just 12 months ago. That is an incredibly impressive amount and represents a 19.9% gain year over year. Condos are up 15.2%, townhomes are up 25%, and patio homes just 6.1%.

Price per square foot matches the pure home price gains. We're seeing increases between 8 and 20% year over year.

So, what's next? Looking forward my guess is that we will see much of the same at least through the Spring of 2021. As of this writing, there are only 40 (just 40!!!) homes available in all of McCormick Ranch. With our 52 sales in November, these 40 homes will only last around 3 weeks. This is the absolutely lowest number of active homes I have ever seen and is surely going to create additional bidding wars.

That being said, we usually see extra homes come on the market in mid-January but there is a lot of pent up demand.

Speaking of demand, it seems to be never ending right now. Mortgage rates are ticking lower almost every month or two and mortgage applications are increasing. The average rate is now 2.92%, according to the article. This gives a lot of extra buying power and helps drive up prices. Plus, with the movement of Californian, mid-Westerners, and those back east to here, Maricopa has become the fastest growing county in the country. Our prices are lower than many of those states creating additional local demand.

As such, assuming none of the major factors (like rates) do not change, we should continue to see a minimum of another 6 months of strong buying.

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-Randy