McCormick Ranch Sales update: February 2021

As we begin the year, the craziness from the latter half of 2020 is continuing in full force. In fact, home demand has increased further, supply has dwindled even more, and we are still seeing lots of upward pressure.

As of this writing, there are only 27 homes available for sale in McCormick Ranch. This includes condos, townhomes, patio homes, and single family. Spring time numbers have recently been closer to 80-100 homes so this is extremely low. We had 48 sales in January so this gives us only about 2 weeks of inventory. This will continue to put extra pressure on homes prices for the near future unless we see a lot of sellers willing to move.

What's driving the increases?

Low interest rates are continuing. Home prices are often a function of the result mortgage payment. When rates go down, affordability goes up.
Phoenix is the fastest growing metropolitan area in the country. We have many new residents moving here from California, the Midwest, and back East. Many of these places have homes more expensive than ours. These buyers have the funds and jobs to easily afford our homes.
Lack of inventory. Many of us just do not have the desire to move and deal with people in our homes during the pandemic. Plus, where would you move to? It can be difficult to find a home once you sell. But, the number of sales over the past 6 months has been higher than the prior year. Anything that is listed is just gobbled up quickly.

It shouldn't come as a surprise that prices have continued to rise. Every single category is at their all time highs. Single family homes are up an amazing 22.6% year over year. Condos and patio homes are up around 12 and 11%, respectively. Townhomes are up substantially more, but this is sometimes due to being listed incorrectly as they can be patio homes or condos.

In line with prices, price per square foot is at an all time high as well. We're seeing very similar gains and numbers. As a reminder, price per square foot is worthless as a measure to value an individual home but very useful when looking at the market as a whole.

So, where do we go from here? It is looking like just up for the time being. We would have to see a major catalyst to change things short term. Longer term, rising interest rates or a large economic change would be the biggest factors that could change this direction. Well, that or everyone decides all at once that Scottsdale is just too hot during the summer. But that hasn't phased us yet!

For a seller, expect to be able to price it aggressively and still have it sell over a week. For a buyer, be prepared to pull all guns out and bid your best once you find the right home.

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Yours in McCormick Ranch real estate,

Randy