McCormick Ranch Sales Update: June 2024

June doesn't only mean the start of our summer. It also usually marks the beginning of a slow down in the number of sales and overall real estate activity throughout Phoenix. This does not mean that prices drop but sellers often put their moves on hold and buyers take a vacation instead of looking at homes for sale on an ongoing basis. That being said, May is generally one of the last busy months until the early Fall. This past May was no exception as we had a strong number of sales and prices remained high.

Single family prices have continually been the bright spot for McCormick Ranch. Their average price ticked back up over the prior month and once again approached their all time highs. There were two sales of single family homes over $2,000,000 (including a beautifully remodeled home that sold for $2,750,000) which helped buoy their price. Buyers are not afraid to pay for quality homes right now.

Townhomes and patios have remained relatively flat for the preceding 12 months. There is a lot of cross over between the two and a lot depends on how they are input in MLS. If we were to combine the categories we'd see a gain of just a few percent for the year. Condos have also ticked up slightly over the past 12 months.

Price per square foot is ticking up in all four styles of homes here in McCormick Ranch. The high sales price of those renovated single family homes caused a substantial bump to an all time high in price per square foot. The 6 month rolling average is now sitting at $513.65. This is a 7.5% increase over 12 months ago. Once again, this shows that buyers are not afraid to pay for quality homes that have been updated to modern standards.

Patio Homes and Townhomes have ticked up a hair to average around $404/square foot. Condos are also up a couple of percent to $353.29.

Days on Market has been relatively flat for the year for McCormick Ranch. Please keep in mind that these are for sold homes. There are often homes that sit on the market for a long time and are then canceled or expired. Thus, many homes are on the market but do not affect statistics like this.

From my view point, we are still seeing a tale of two kinds of houses. Anything remodeled and in turn key condition is more likely to sell quickly and for top dollar. Something that needs a full remodel will also sell quickly when priced appropriately. Investors here are constantly looking for projects. I'm seeing the middle ground be the most challenging. Homes that were updated a long time ago or have had bits and pieces done tend to sell slower than their remodeled counterparts.

Looking forward, I'm expecting things to remain relatively flat for the remainder of the year. Inventory has stayed stable over the prior 4 months. We have seen between 81 and 87 homes listed for sale in McCormick Ranch since March. While higher interest rates have slowed down demand for many buyers it has not completely killed our market.

The Fed and inflation policy will be a major factor in what happens in the near and long term. We are still seeing mixed reports with some metrics improving and some metrics not. The Fed has been extremely cautious thus far and so these rates may be here to stay for longer than expected.

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Yours in McCormick Ranch real estate,

Randy Arriola