Ahwatukee AZ Real Estate Housing Market Report - November 2021

12/22/2021

Ahwatukee AZ Real Estate Housing Market Report - November 2021

The average sales price of homes in Ahwatukee has increased for the second straight month after dropping in September. The average sales price increased from $558,685 in October to $585,399 in November. It is getting closer to the all-time high of $602,866 that was reached in August of this year.

The price per square foot of Ahwatukee homes is on the rise again. After decreasing to $263/sf in October, the price per square foot increased in November up to $276/sf. This is the ninth time the price per square foot has either increased or remained the same in the last ten months.

After dropping to 22 DOM in August, to tie the all-time low, the Ahwatukee DOM has increased for the third consecutive month, from 28 DOM last month to 30 DOM in November. This is still a very low number, and it is obvious that the demand for homes in Ahwatukee is high, and homes are selling fast, even as we near the end of the year.

Ahwatukee AZ homes for sale | Troy Erickson Realtor

After remaining exactly the same in October as the previous month, at 132, Ahwatukee home sales dropped to 109 for November. November home sales in Ahwatukee dropped below November home sales last year, but they are still higher than they were in November of 2018 and 2019. Ahwatukee home sales this November are -11.4% less than they were in November of 2020, but Ahwatukee is still on pace to have the highest number of home sales for the year since at least 2017.

The number of new listings in Ahwatukee dropped from 145 in October to 129 in November, but they are still higher than November over the last three years. It is typical for the number of new listings to drop off towards the end of the year as we head into the winter, and a slower real estate market. This is the seventh month out of the last eight where new listings for the month have been greater than the new monthly listings for last year. This means that more home owners have been looking to sell since early on in 2021.

Active listings in Ahwatukee increased for the second straight month, going from 177 in October to a new 2021 high of 180 in November. Even with this increase, the number of active Ahwatukee listings is still -3.2% lower than in November of last year. We still could use more Ahwatukee listings due to the continued high demand from buyers.

There has been a lower than normal inventory of Ahwatukee homes for sale for quite some time now, and homes that are listed in Ahwatukee continue to sell very fast. Median home values in Ahwatukee have increased an average of 23.6% since November of 2020, which is amazing growth. With interest rates remaining close to 3.0%, the demand from buyers looking to purchase should remain high throughout the remainder of 2021.

>>Click Here To See All Current Ahwatukee Arizona Homes For Sale<<

For more detailed stats on the Ahwatukee Housing Market, just click on the image below. Then call/text me when you are ready to buy or sell your next home.

Ahwatukee real estate housing report - October 2021

When you're ready to buy, sell (or both), or invest in East Valley real estate, reach out to me so we can put your plans into motion. With low mortgage rates leading the way, it's a great time to take advantage of your position in today's market.

If you're thinking of selling, many buyers will be eager to find a home just like yours due to the low inventory of available homes for sale. Reach out to me today to make sure you can get your house in on the action.

If you're thinking of buying a home, more homes are being listed for sale, and interest rates remain at historically low rates. Being a trusted real estate professional, I can answer your questions and help you determine your next steps.

Homes for sale in Ahwatukee, AZ | Troy Erickson Realtor

Feel free to reach out to me if you have any questions about home buying, selling, or investing in the Phoenix Metro or East Valley areas. Just give me a call or text at 602-295-6807 and I will be glad to help.

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Serving East Valley cities, including Chandler, Gilbert, Tempe, Mesa, Phoenix, Scottsdale, and Ahwatukee

Troy Erickson Realtor | 3175 W. Stephens Place, Chandler, AZ 85226 | 602-295-6807 | [email protected]

Troy Erickson has been blogging about Arizona real estate since 2006. He is a residential real estate agent who specializes in helping home buyers, sellers, and investors in Chandler and the East Valley. He has been recognized for his local market expertise, and frequently volunteers within his community.

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Scottsdale AZ Real Estate Housing Market Report - November 2021

12/21/2021

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Scottsdale AZ Real Estate Housing Market Report - November 2021

After reaching a new all-time high average sales price of $1,270,873 in October, the average sales price of homes in Scottsdale decreased by $155,514 in November reaching a new amount of $1,115,359. Average sales prices increased by $165,934 in October, so this $155,514 decrease for November is not as drastic as it may seem. At the same time, the average sold price per square foot decreased to $388/sf after increasing for three straight months, and reaching a high of $396/sf in October.

The days on market also jumped up to 42 DOM, after decreasing in October down to 36 DOM. The Scottsdale DOM was as high as 76 in January of this year, so even though the DOM increased to 42 it is still extremely low, especially for homes in this price point. The low DOM shows that homes in Scottsdale are still very much in demand, and they are selling very quickly.

Scottsdale AZ homes for sale | Troy Erickson Realtor

After decreasing in October, Scottsdale home sales increased for only the second time in the last seven months, since reaching an all-time high in home sales of 646 this last March and April. Home sales increased from 435 homes sold in October up to 494 in November. November typically sees a decline in home sales as we enter the slower winter season. This is the fifth month in a row that Scottsdale home sales are less than they were in the same month last year, and are now -7.8% less than they were in November of 2020.

The number of new Scottsdale listings decreased for the seventh straight month, down from a high of 739 in April to 458 in November, and they are now lower by -10.5% than in November of last year. After increasing last month, the number of active listings decreased from 982 in October to 912 in November, and are now down -36.0% from November of last year. This is by far the lowest inventory of homes for sale in Scottsdale since this data started being reported (Active listings in January of 2000 were 1,022).

The lack of listings continues to drive demand, even though this month saw a significant decrease in Scottsdale home prices. Home sales increased this last month, and are still occurring faster than ever, while home inventory is on the decline.

Median home values in Scottsdale have increased an average of 22.3% since November of 2020, which is amazing. With interest rates hovering just above 3.0%, there will still be more buyers looking to purchase a Scottsdale home the remainder of this year.

>>Click here to sell all current Scottsdale Arizona Homes For Sale<<

For more detailed stats on the Scottsdale Housing Market, just click on the image below. Then call/text me when you are ready to buy or sell your next home.

Scottsdale real estate housing report - November 2021

Homes for sale in Scottsdale, AZ | Troy Erickson Realtor

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Serving East Valley cities, including Chandler, Gilbert, Tempe, Mesa, Phoenix, Scottsdale, and Ahwatukee

Troy Erickson Realtor | 3175 W. Stephens Place, Chandler, AZ 85226 | 602-295-6807 | [email protected]

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Phoenix AZ Real Estate Housing Market Report - November 2021

12/20/2021

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Phoenix AZ Real Estate Housing Market Report - November 2021

After a nice increase of $21,191 in October, the average sales price of Phoenix homes slightly decreased $1,778 in November bringing the average sales price to $523,062. This is only the third decrease all year, but November has seen a drop in average sales prices in three of the last four years so it is not unusual. At the same time, the average sold price per square foot increased for the fourth straight month, from $274/sf in October to $275/sf in November.

After reaching a record low of 23 days on market in May and June, days on market for Phoenix homes has increased for the fifth straight month, and is now up to 32 DOM for November.

Phoenix AZ homes for sale | Troy Erickson Realtor

Phoenix home sales decreased for the second straight month, from 1,556 in September, to 1,505 in October, to 1,413 in November. Home sales are now down -5.3% from November of 2020. However, through all of this pandemic and low inventory, Phoenix home sales are on pace to be higher than they have been in at least the last four years.

After reaching a 2021 high of 1,888 new listings in June, the number of new listings has dropped in four of the last five months. It took a significant decrease this last month, going from 1,701 in October down to 1,446 for November. Even with this significant drop, the number of new Phoenix listings are now 3.2% higher than in November of last year (November and December always see a large decline in new listings, and the decline this year was a lot less than in 2020). After increasing for seven straight months, the number of active Phoenix listings decreased in November, going from 2,353 in October, to 2,286 this month, and they are now down -11.8% from November of 2020.

The lack of listings continues to drive demand and home prices higher. As long as listings continue to be less than in previous years, and demand remains high, expect home values in Phoenix to continue to increase.

With that said, median home values in Phoenix have increased an average of 27.1% since November of 2020. With interest rates remaining just above 3.0%, there will still be more buyers looking to purchase Phoenix homes through the remainder of this year.

>>Click Here To See All Current Phoenix Arizona Homes For Sale<<

For more detailed stats on the Phoenix Housing Market, just click on the image below. Then call/text me when you are ready to buy or sell your next home.

Phoenix real estate housing report - November 2021

Homes for sale in Phoenix, AZ | Troy Erickson Realtor

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Serving East Valley cities, including Chandler, Gilbert, Tempe, Mesa, Phoenix, Scottsdale, and Ahwatukee

Troy Erickson Realtor | 3175 W. Stephens Place, Chandler, AZ 85226 | 602-295-6807 | [email protected]

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Mesa AZ Real Estate Housing Market Report - November 2021

12/19/2021

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Mesa AZ Real Estate Housing Market Report - November 2021

After reaching a new all-time high of $501,105 for August, the average sales price of Mesa homes decreased to $485,190 in November. After a slight increase in October, this is the second month in the last four months that average home prices in Mesa have decreased. Prior to this, average home prices increased in Mesa for 9 straight months. Even though the average sales price decreased in November, the price per square foot has either remained the same, or has continued to climb for at least 23 consecutive months. November pricing per square foot remained the same as October, with an average sold price of $251/sf.

The DOM for Mesa in November remained the same as October, at 28 DOM. This is the second month in a row that Mesa DOM has been over 25, and the highest it has been since it was 33 DOM back in February of this year. The days on market is still extremely low for Mesa, and means that homes in Mesa, AZ are still selling very fast!

Mesa AZ homes for sale | Troy Erickson Realtor

After decreasing the last two months, Mesa home sales saw a nice increase for November, bouncing back up to 640 homes sold. This is not quite as high as home sales in November of last year (708), but it blows away the Mesa home sales from November of 2018 (517) and 2019 (505). Because 2020 was such a unique year due to COVID-19, home sales are lower than November of last year by -9.6%.

The number of new listings for November has now dropped below 600, after being over 725 between March and September of this year. This is the fourth decrease in a row after reaching a 2021 high of 755 new listings in July. New listings in Mesa are down to 585 for November, and even though that is a significant drop, it is a 1.2% increase from November of last year. This is due to the seasonal cycle of real estate in Arizona, and the fact that fewer homes are listed during the winter months.

There is still a lack of inventory based on demand, and that will only help home prices continue their upward trend. The number of active listings decreased from 897 in October to 840 in November. This is the second decrease in a row, and only the second decrease in Mesa home inventory since March of this year (after increasing for five straight months). Since active listings in Mesa have decreased, the number of active listings in Mesa is now less than in November of 2020 by -6.8%. To represent how low Mesa inventory is right now, the current inventory of homes for sale is down -40.1% from November of 2018.

The number of listings overall is still low, and the lack of listings continues to drive demand and home prices higher. Median home values in Mesa have increased an average of 25.9% since November of 2020. With interest rates remaining slightly above 3.0%, there still should be more buyers looking to purchase in Mesa throughout the rest of this year.

>>Click Here To See All Current Mesa Arizona Homes For Sale<<

For more detailed stats on the Mesa Housing Market, just click on the image below. Then call/text me when you are ready to buy or sell your next home.

Mesa real estate housing report - November 2021

Homes for sale in Mesa, AZ | Troy Erickson Realtor

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Serving East Valley cities, including Chandler, Gilbert, Tempe, Mesa, Phoenix, Scottsdale, and Ahwatukee

Troy Erickson Realtor | 3175 W. Stephens Place, Chandler, AZ 85226 | 602-295-6807 | [email protected]

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Tempe AZ Real Estate Housing Market Report - November 2021

12/18/2021

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Tempe AZ Real Estate Housing Market Report - November 2021

The average sales price of Tempe homes for November significantly decreased by $33,854, after increasing by $30,504 the last two months. The average sales price of Tempe homes is now at $501,611.

At the same time, the average sold price per square foot increased for the second straight month, going from $279/sf in October to $293/sf in November.

After increasing for four straight months, days on market remained the same in November as October, at 32 DOM. Even though the trend has seen days on market increasing, 32 DOM is still very low, and homes in Tempe are still selling very fast.

Tempe AZ homes for sale | Troy Erickson Realtor

After increasing last month, Tempe home sales dropped from 143 in October down to 116 in November. This has been a trend over the last seven months, where Tempe home sales increase one month and decrease the next month. Home sales in Tempe have decreased in November in each of the last four years, so this is fairly common with the seasonality of real estate here in Arizona. With this decrease, Tempe home sales are now -4.1% lower than in November of 2020. The low number of listings is impacting sales, even though we are into the winter months when housing sales tend to drop off. Even with that said, we may see the largest number of Tempe homes sold this year than any other year since 2017.

The number of new listings decreased for the third straight month, dropping from 139 in October to 119 in November, yet they are 15.5% higher than in November of last year. The number of active listings dropped from 222 in October down to 197 for November, which is more typical of what you would see in the last few months of the year, as fewer home owners decide to sell during the fall and winter. The number of active listings are lower than they were in November of last year by just -1.5%.

Active listings are almost exactly where they were last year at this time. They are significantly low historically, and the lack of homes for sale continues to drive demand and home prices higher. We can expect home values to continue to increase as long as the inventory remains low.

With that said, median home values in Tempe have increased an average of 22.1% since November of 2020. With interest rates remaining just above 3.0%, there will still be more buyers looking to purchase for the remainder of 2021.

>>Click Here To See All Current Tempe Arizona Homes For Sale<<

For more detailed stats on the Tempe Housing Market, just click on the image below. Then call/text me when you are ready to buy or sell your next home.

Tempe real estate housing report - November 2021

Homes for sale in Tempe, AZ | Troy Erickson Realtor

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Serving East Valley cities, including Chandler, Gilbert, Tempe, Mesa, Phoenix, Scottsdale, and Ahwatukee

Troy Erickson Realtor | 3175 W. Stephens Place, Chandler, AZ 85226 | 602-295-6807 | [email protected]

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Gilbert AZ Real Estate Housing Market Report - November 2021

12/17/2021

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Gilbert AZ Real Estate Housing Market Report - November 2021

The average sales price of Gilbert homes has increased for the second straight month, after fluctuating up and down every other month between July and October. The average sales price of Gilbert homes increased from $594,358 in October, to a new all-time high of $623,521 for November. After dropping for the first time in 16 months, the average sold price per square foot of homes in Gilbert has increased from $259/sf last month to $268/sf in November. This is just another sign that home values continue to increase, even as we near the end of 2021.

The days on market in Gilbert increased for the fifth straight month, from 25 DOM in October to 29 DOM in November. Even though this is the sixth increase in the last seven months, the DOM is still extremely low, which means that homes in Gilbert Arizona are still selling very fast!

Gilbert AZ homes for sale | Troy Erickson Realtor

Gilbert home sales had a nice increase in November, after dropping down to 364 in October. Increasing to 424 this month, Gilbert home sales are now just -2.8% lower than in November of last year. Home sales typically drop off towards the end of the year due to the cycle of the housing market slowing down, so this increase is a little unusual. Sales are significantly lower than last year, and I believe it is partially due to the lack of inventory.

The number of new listings in Gilbert dropped in November to 329, after slightly increasing in October to 453. New listings have fluctuated up and down each month since March of this year. This is the lowest number of new listings all year, but it is typical for listings to decline towards the end of the year. The number of new listings for November is -7.8% less than the number of new listings in November of last year.

There is still a lack of inventory based on demand, and that will only help home prices continue their upward trend. The number of active listings sits at 488 for November, down from 526 in October. This is only the second drop in Gilbert inventory this year, but this is typical during the last couple of months of the year. Although listings dropped, active listings in Gilbert are now higher than the same month as last year for the first time since June of 2019. There are 1.9% more homes for sale in Gilbert compared to November of 2020.

The lack of listings continues to drive demand and home prices higher. Median home values in Gilbert have increased an average of 31.0% since November of 2020. Mortgage interest rates have started to increase above 3.0%, but are still historically low, so there still should be more buyers in Gilbert looking to purchase homes throughout the remainder of 2021.

>>Click Here To See All Current Gilbert Arizona Homes For Sale<<

For more detailed stats on the Gilbert Housing Market, just click on the image below. Then call/text me when you are ready to buy or sell your next home.

Gilbert real estate housing report - November 2021

Homes for sale in Gilbert, AZ | Troy Erickson Realtor

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Serving East Valley cities, including Chandler, Gilbert, Tempe, Mesa, Phoenix, Scottsdale, and Ahwatukee

Troy Erickson Realtor | 3175 W. Stephens Place, Chandler, AZ 85226 | 602-295-6807 | [email protected]

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Chandler AZ Real Estate Housing Market Report - November 2021

12/16/2021

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Chandler AZ Real Estate Housing Market Report - November 2021

For the second month in a row, the average sales price of Chandler homes increased from $557,589 in October to $565,943 for November. This is still not quite as high as prices reached in July of this year, when they saw an all-time high of $569,492. The average sales price per square foot has increased or remained the same for 18 straight months, and is now at $276/sf for November. This is a $66/sf increase from the $210/sf in November 2020.

The days on market remained the same for November as October, at 27 DOM. This is an increase from the record low of 20 DOM set in August this year. This is the highest the Chandler DOM has been since January of this year. It is amazing that the DOM has continued to remain so low, which means that homes in Chandler are selling faster than they ever have, and most home sellers are receiving multiple offers, which continues to drive prices up.

Chandler AZ homes for sale | Troy Erickson Realtor

After increasing for two straight months, Chandler home sales have now decreased for two straight months, from 379 in September, to 359 in October, down to 338 for November. This amount for November is less than November of last year by -5.1%. This is a huge turnaround from April, when home sales were up 47.6% from April of 2020. I believe the large increase in Chandler home sales you saw earlier this year compared to last year had a lot to due with the COVID-19 pandemic.

The number of new listings has dropped for the fourth straight month, down to 269, and are down -12.9% from November of last year, as many people continue to stay in their homes longer, and there have not been enough new homes built to keep up with demand.

At 414, the number of active listings decreased after increased for five straight months. The number of active listings were getting closer to what we saw in 2020, but now with with this decrease, new listings are still fewer than last years numbers, down 14.6% from last November.

The lack of listings continues to drive demand, and home prices higher. Median home values in Chandler have increased an average of 25.7% since November of 2020, which is almost unbelievable. I wonder how much longer home values can continue to increase like this. Mortgage interest rates have started to increase above 3.0%, but there are still more buyers looking to purchase Chandler homes in 2021 than there are homes for sale.

>>Click Here To See All Current Chandler Arizona Homes For Sale<<

For more detailed stats on the Chandler Housing Market, just click on the image below. Then call/text me when you are ready to buy or sell your next home.

Chandler real estate housing report - November 2021

Homes for sale in Chandler, AZ | Troy Erickson Realtor

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Serving East Valley cities, including Chandler, Gilbert, Tempe, Mesa, Phoenix, Scottsdale, and Ahwatukee

Troy Erickson Realtor | 3175 W. Stephens Place, Chandler, AZ 85226 | 602-295-6807 | [email protected]

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Housing Wealth: The Missing Piece of the Affordability Equation

12/15/2021

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Housing Wealth: The Missing Piece of the Affordability Equation

Best way to build wealth is to buy a home

The real estate market is soaring today. Residential home values are rising, and that’s a big win for homeowners. In 2020, there was a double-digit increase in home values – a trend that’s expected to head toward similar levels this year.

However, skyrocketing prices are causing some to start questioning affordability in the current housing market. Many are quick to emphasize the fact that homes today are less affordable than they were last year. Black Knight, a leading provider of data and analytics across the homeownership life cycle, just reported on the issue.

The findings show the historical averages of the national payment to income ratio, which they define as “the share of the median income needed to make the monthly payments on the median-priced home.” Their study reveals:

The average over the last 25 years was 23.6%
The average over the last 5 years was 20.1%
The average today stands at 20.5%

Right now, housing payments are slightly less affordable than the five-year average – but only by less than ½ a percentage point. However, they’re significantly more affordable than the 25-year average. Put another way, a buyer will likely make a slightly greater financial sacrifice to afford a home right now than if they purchased a home within the last five years. On the other hand, it also means the potential financial sacrifice is not nearly as great as it was over the last 25 years.

Does making a sacrifice to buy a home today make financial sense in the long term?

Last week, the Federal Reserve announced that, in the first three months of the year, household net worth increased by $968 billion based solely on the values of the real estate they owned. Another report from CoreLogic reveals the average annual gain in homeowner equity was $33,400 per borrower.

Homeownership continues to be the cornerstone to building personal wealth. For most Americans, their home is the largest asset they own. On top of that, the difference between the net worth of homeowners and renters is significant at every income level. Here’s a table detailing that point using data from a study done by First American:

Net worth is greater for homeowners than for renters

Owning a home is an essential steppingstone to grow a household’s net worth. Despite the slightly greater sacrifice in the percentage of monthly income you’ll spend on housing today, for most homebuyers, the payoff of starting to build equity now will be worth it.

Bottom Line

Since prices have risen dramatically over the past 18 months, it’s slightly less affordable to buy a home today than it was a year ago. However, when you consider the equity gain and weigh the long-term benefits of building your net worth, you may question if you can afford not to buy now.

If you’re thinking of buying a home, more homes are being listed for sale, and interest rates remain at historically low rates. A trusted real estate professional can answer your questions and help you determine your next steps.

Feel free to reach out to me if you have any questions about the home buying process in the East Valley. Just give me a call/text at 602-295-6807 and I will be glad to help.

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Serving the Phoenix Metro, and East Valley cities including Chandler, Gilbert, Tempe, Mesa, Phoenix, Scottsdale, and Ahwatukee

Troy Erickson Realtor | 3175 W. Stephens Place, Chandler, AZ 85226 | 602-295-6807 | [email protected]