Published in the November 26, 2020 issues of the Glendale Star and Peoria Times. Lisa Baker, Guest Writer
You don't have to be a Buyer or Seller right now to realize that we are in a housing market crunch. And it will likely not surprise you to know that we are not alone.
According to the National Association of Realtors latest quarterly report, every metro area tracked by the National Association of Realtors® during the third quarter of 2020 saw home prices increase from a year ago. Sixty-five percent of metros – 117 areas out of 181 – witnessed double-digit price growth from one year ago. The nation's median existing single-family home price climbed 12.0% on a year-over-year basis to $313,500. And where did we rank? According to the report, the Phoenix-Mesa-Scottsdale Metropolitan area saw an 18.12% year-over-year increase, with the median home price coming in at $341.60. That puts us well above the national average.
During October, 408 MLS listing sales closed in Glendale, and 445 in Peoria. Today there are 204 active and available listings (not counting properties already under contract or pending close of escrow) in MLS in Glendale and 250 active listings in Peoria. That's 50% of one month's
inventory in Glendale (down from 56% in September) and 56% of one month's inventory in Peoria (down from 69% in September). Today's Maricopa County inventory is at 75.8% of October's closed sales (down from 87.4% last month).
Maricopa County Seller concessions are still low, with only around 9.25% of Sellers contributing to Buyer's closing costs. In line with Buyers needing to gain a competitive edge, about 6.5% of Buyers contributed to Seller's closing costs in October.
Showing traffic saw some very slight decreases. According to ShowingTime, the platform REALTORS use to schedule most of the MLS showings, during October, listings in the $200,000-$299,999 range averaged 15.10 showings per listing in Glendale and 13.67 in Peoria. The next closest was the $300,000-399,999 range, with 12.34 showings per listing in Glendale and 10.81 showings per listing in Peoria. And not every showing is scheduled through ShowingTime, so the actual numbers are higher.
Interest rates also saw very little change. According to Freddie Mac, As of November 12, 2020, National Mortgage Rates reported U.S. weekly averages of 2.84% for a 30-year fixed, 2.34% for a 15-year Fixed-Rate, and 3.11% for a 5-Year ARM.
As you might expect, October's entry-level prices for a detached home with three bedrooms and two baths increased nearly across the board for every method of financing. In Glendale, Conventional Buyers spent a minimum of $225,777, FHA Buyers spent $230,000, and VA Buyers got a little bit of a break at $246,000. Peoria Buyers, with a Conventional loan, spent a minimum of $240,000, FHA Buyers saw a dip to $208,000, and VA Buyers spent $260,000. Across Maricopa County, Buyers paid a minimum of $155,000 with a Conventional mortgage, $195,000 with FHA, and $212,000 with a VA loan. Countywide, Buyers using financing made up for 83.7% of October sales, up from 66.5% of MLS sales in September. Of that percentage, 71.2% of Buyers used Conventional mortgages, 14% used FHA, 6.72% used VA loans, and the remaining sales used other methods of financing.
If you're struggling right now, please know that you are not alone. If you're a Homeowner, contact your Lender to see what programs they are offering. If you're a Tenant, rental assistance is available through the Arizona Department of Housing website at www.saveourhomeaz.gov. If you're a Landlord, you can apply for aid at https://arizonatogether.
