McCormick Ranch Sales Update: July 2024

The summer heat is in full swing and I hope you are able to enjoy the pool, escape town, or stay cool indoors! One of my favorite things about McCormick Ranch is our easy access to the Greenbelt. I run on the Greenbelt most mornings and still see lots of others staying active and getting your morning workout in even with the heat. It's great to see!

Traditionally, as we move through summer, the entire Phoenix-area real estate market slows down. Who wants to move in 115 degrees unless absolutely necessary? The slowness is compounded when you add in the effect of higher rates that we have had. However, McCormick Ranch was unusually slow for the month even when taking these into consideration. Only 25 houses changed hands in the last month. These were contracts written in May which tends to be the tail end of the busy season (the heat hadn't set in by then!). For reference, June 2023 had 49 sales so we are down almost 50%.

Interestingly enough, even with the lackluster sales numbers, inventory dropped for the month. We went from 87 available homes on June 1st to 76 on July 1st. This is between condos, townhomes, patio homes and single family homes. Sellers are becoming more stationary as many are locked into their low rates. This has been the first drop in inventory since the beginning of the year. We are continuing to buck the trend of a normal real estate market as inventory levels typically drop throughout the first half of the year and begin to rise in July.

Prices appeared to drop for the month. However, we did not have any true luxury properties sell during June. The most expensive listing sold was my listing at 9031 N 83rd Way for $1,355,000. We often see renovated listings sell in the $1.5-2.5 range so this will cause a small blip in prices. I'm expecting that this will be very short lived, though, as there are currently 3 homes under contract between $1.9-2.5M in McCormick Ranch.

Patio homes/townhomes and condos remained healthy and prices have stayed very stable.

We saw a very similar chart with the price per square foot. Single family homes dropped month over month to $502.94 due to the lack of renovated homes being sold. This is still 6.8% higher than a year ago. Condo price per square foot has dropped a hair in the past 6 months but is only .4% down from a year ago. When we combine patio homes and townhomes we are up around 5% in price per square foot from June 2023.

What's next for our market? It's still incredibly difficult to tell. There are still hopes and rumors that the Fed will begin to drop rates as recent data has shown inflation is leveling. This could set off extra buyer interest and heighten demand. If inventory levels continue to drop then we could also see a squeeze on buyers as it moves further into a seller's market. But, this can change in an instant if there are extra sellers who decide they need to move for any multitude of reasons. As always, time will tell!

Stay cool out there!

Randy Arriola, HomeSmart