JULY MARKET UPDATE
Is a cooling trend on the horizon for our real estate market?
The average number of days a listing spent on the market in Maricopa County has again decreased, going from 26.6 days in May to 25.3 days in June. According to The Cromford Report, 61% of sales closed in Maricopa County during June sold for an amount over the listing price, up from 59% of May sales.
While these numbers don't appear to indicate a slight cooling of the market, a sharp drop in the number of showings per listing, coupled with only a 1% increase in the median sales price from May to June in Maricopa County, might.
According to ShowingTime, the platform REALTORS use to schedule most of the MLS showings, showings of Peoria listings in the $200,000-$299,999 range averaged 13.73 showings per listing, a 34% drop from May, and Peoria traffic in the $300,000-399,999 range averaged 16.38, a 9% drop. For homes in the $200,000-$299,999 range in Glendale, the average decreased to 18.33 showings per listing, an 18% drop, and homes in the $300,000-$399,999 range averaged 16.22 showings per listings, a 20% drop. Not all showings are scheduled through ShowingTime, so actual numbers are typically higher but unlikely to be high enough to offset these decreases.
June 2021 saw 452 MLS listing sales closed in Glendale and 404 in Peoria. Today there are 195 active and available listings (not counting properties already under contract or pending close of escrow) in MLS in Glendale and 193 active listings in Peoria. That is 43% of one month's inventory in Glendale, the same as this time last month, and 48% of one month's inventory in Peoria, up from 47%. Today's Maricopa County inventory is 54% of June's closed sales, up from 51% in May.
According to Freddie Mac, mortgage rates are holding steady. As of July 15, 2021, National Mortgage Rates reported U.S. weekly averages of 2.88% for a 30-year fixed, 2.22 % for a 15-year Fixed-Rate, and 2.47% for a 5-Year ARM.
FHA Buyers in Maricopa County paid a minimum of $177,990 for a detached home with three bedrooms and two baths in June. Peoria FHA Buyers paid a minimum of $290,000, and Glendale FHA Buyers paid $300,000. Conventional Financing Buyers saw minimums of $210,000 in Maricopa County, $270,000 in Peoria, and $260,000 in Glendale. Maricopa County VA Buyers paid a minimum of $260,000, and Peoria VA Buyers paid $330,000. No three-bedroom homes were purchased with a VA loan in Glendale during June. The minimum purchase was a four-bedroom and two-bath home purchased at $400,000. In Maricopa County, the highest-priced detached home sale in June closed at $12,100,000.00. Peoria's highest price detached home sold for $1,715,000.00, and the highest price detached home in Glendale sold for $1,475,000.00.
According to MLS statistics, 74.4% of Maricopa County Buyers financed their home purchase in June. Conventional financing made up 76% of those sales, while FHA and VA accounted for 7.4% and 5.6%, respectively. The remaining sales used other financing methods. For the week ending June 27, 2021, only 3% of Maricopa County Sellers contributed to their Buyer's closing costs.