McCormick Ranch Sales Update: March 2021

As we move into our season of perfect weather, we are starting to get a better glimpse of what the next few months will look like on the real estate side.

And it is busy for sure!

Everything and anything is selling quickly and for more of a premium than ever before. We are seeing every type of home sell with multiple offers. The list price is might not have much basis in reality as it is often now lower than the final sales price. We are in the largest seller's market ever seen in Phoenix, Scottsdale and McCormick Ranch.

What is causing this? It's demand driven. We are (still!) the fastest growing county. We have transplants coming from California, the midwest, and back east. And our home prices are still attractive for many.

Single family home prices are through the roof and at the highs once again. In February, we saw four homes sell between $1M and 1.3M. We saw three other sales at $1.98M, 2.2M, and 2.4M. In all fairness, these three are skewing the data high.

One of the common threads has been that there just isn't any inventory. However, I'm going to take a different approach and say that number of new listings isn't that much different than before. They are just being eaten up immediately due to all of the demand! If we look at all of 85258, we're seeing around 100-125 homes come to market each month. This isn't too far out from the norm.

So what is happening? Demand! There were 298 sales in all of McCormick Ranch for the prior 6 months (September 2020 through February 2021). There were only 230 sales for the previous year. This takes a massive chunk away from the number of available homes!

So what happens next? I'm expecting more of the same. Lots of bidding wars and a continued frenzy to raise prices.

As a buyer, this isn't necessarily a bad thing. Yes, you may be paying more than you were just 3 or 6 months ago. But if prices continue to go up then you are still building equity and your current purchase may seem like a killer deal in just a few more months. With the constant demand we are having, this seems like a good possibility (although there obviously aren't any guarantees).

As a seller selling for top dollar and having a quick sale is never a bad thing.

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Your neighbor in McCormick Ranch,

Randy