Ahwatukee-Foothills Real Estate Update – November 1, 2020
This Ahwatukee-Foothills Real Estate Update – November 1, 2020, is based on Allen Henderson’s Ahwatukee-Foothills Real Estate Market Update that will appear in the Ahwatukee Foothills News, on November 4, 2020.
To watch the video update, click the video button above.
Welcome to the Ahwatukee-Foothills, November 1, 2020, Real Estate Update.
A review of the real estate market, October, monthly, snapshot shows the Ahwatukee-Foothills average sale price is up 24%, and the number of units sold was up 27%, over 2019. Properties are selling in a matter of days. 151 properties came on the market in October and 53 or 35% of those were under contract in less than 7 days. In this fast market, 66 or 44% were under contract in less than fourteen days and 91 or fully 60% of the properties listed in September were under contract in under 30 days. Even in this hot market, 53 or 35% of the properties that came on the market in October, are still active and looking for a contract.
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The October real estate sales snapshot for Ahwatukee-Foothills indicates that the average sale price rose to $452,942. This is up 24% over the same period in 2019 when the average home value was $365,370. The October number of units sold is up 23% with 156 units sold in October 2020 versus 123 units for the same period in 2019. Homes sold faster in 2020 with average days on market dropping to 35 days versus 50 days in 2019. Buyers are continuing to step up with higher offers to get prime properties. However, we are still seeing that buyers are not willing to overpay to get a property. As a result, the number of October listings that required a price reduction to get an offer declined to 47 units or 30% of the closed listings. Historically, about 40% of properties require a price reduction to get a sale, however, in this market, prices and the number of units sold are up while the number of listings requiring a price reduction to get an offer is declining.
Moving from the monthly snapshot of the market to the bigger picture, in the January to October 31st time frame, the year to date average Ahwatukee sale price was $413,394. This is up 10.4% over the same period in 2019 when the average sale price from January to the end of October was $374,414. The number of units sold continues to lag behind 2019 sales results as numbers fell 3.6% from the 1,408 units sold in the same period 2019 to the 1,357 units in 2020. The active listings inventory in the Ahwatukee real estate market is staying steady at 97 units this month. This market is “Hotter” than “HOT.’ There are many frustrated buyers looking for homes in Ahwatukee. The number of units sold would be higher if there were more appropriately priced properties on the market.
So why are the 53 or 35% of the properties, that came on the market in October still waiting for an offer? The answer is in the numbers. When we look at the October sales summary of closed sales, we can see that 47 or 30% of the closed listings required a price reduction to get an offer. Month after month, we find that 30% to 40% of the listings require a price reduction to get an offer. Even in a “HOT” seller’s market, buyers are not going to overpay to get a property. Buyers will offer a few points above what the comparable sale data would indicate. However, they are not going to overpay even in this “HOT” market. If they did, it would still have to appraise. Appraisers will come up a few points over comparable sales values, but they will not appraise property at a price that is unreasonable and unsupportable.
So in answer to the question we posed, “So why are the 53 or 35% of the properties, that came on the market in October still waiting for an offer? ” If a nice property stays on the market longer than similar, comparable properties, there is obviously a pricing issue and a price reduction is in order to get an offer. The old real estate axiom, location, location, location and price, price, price, always holds true. Our advice is consistent! Always price it right the first time to get it sold faster and for more.
There are 97 active listings in the Ahwatukee market today. We are averaging 136 closed sales per month in 2020. With 151 units sold in October, the 97 active listings will be depleted in less than 20 days. Anything less than a six-month inventory is considered to be a seller’s market. The Ahwatukee-Foothills market remains a “Very Strong Seller’s Market.”
The average days on market is a good indicator of the strength of the real estate market. The number of days on the market, in the January to October time frame, dropped from 60 days in 2019 to 45 days in 2020. Homes sold on average 35% faster in 2020 than in 2019. The strong seller’s market we have seen for months is getting even stronger. We must say again, that this is one of the few times we would advise sellers to list a little higher to test the market. This will not always be our advice, however, it is a prudent consideration in this market
There were 4 sales of properties over a million dollars in the October 1, to October 31, market. The high sale closed at $2,300,000. It was in Tapestry Canyon and it was on the market for only 16 days. Today there are 22 Active listings for million-dollar-plus properties. There have been 25 sales of million-dollar-plus properties at an average sale price of $1,351,480. in Ahwatukee in 2020. They were on the market an average of 174 days and 40% required a price reduction to get a sale.
In the luxury market from $600,000. to $999,999., there have been 117 sales in 2020. The average sale in this price range was $700,558. Marketing time on average was 63 days.
In the $500,000. to $599,000. price-range there have been 139 sales at an average price of $544,415. in 2020. Marketing time on average was 63 days.
In the $400,000. to $499,000. price-range there have been 253 sales at an average price of $437,780. in 2020. Marketing time on average was 40 days.
In the $300,000. to $399,000. price-range there have been 498 sales at an average price of $346,731. in 2020. Marketing time on average was 37 days.
In the under $300,000 market, there were have been 278 sales at an average price of $236,210. in 2020. Marketing time on average was 33 days.
In summary, the highest number of sales (498 units) was in the $300,000. to $399,000. price-range. Further, 1,029 properties or 76% of the total closed sales in Ahwatukee this year are for properties under $500,000. As expected, we see that the marketing time, calculated as the number of days on the market, increased as the price point increased.
The economic outlook continues to be strong. Demand is high and increasing, for homes in the Phoenix and Ahwatukee real estate market. Interest rates are low and the Federal Reserve has indicated they are not anticipating interest rate increases in the short term. Phoenix is ranked number three in the country with respect to job creation. Despite some rumblings about a downturn in the national real estate market, the outlook appears to be mostly positive. Of course, the political situation is always a wild card as Washington reacts to the Corona Virus, social unrest, and dissidence, and international trade issues. All in all, there has never been a better time to sell an Ahwatukee property for a great price and quickly. We know that every home is unique. If you have any questions or if you would like to have a free professional consultation to help you determine what needs to be done to make your home shine and the best strategy to get it sold for top dollar, please feel free to call or text me.
I am available for any questions
Henderson Real Estate
*Ahwatukee Foothills is the official name of an Urban Village in Phoenix. Ahwatukee Foothills lies south of South Mountain and South Mountain Park. “Ahwatukee Foothills” is comprised of zip codes 85044, 85045 and 85048. Some confusion occurs when some folks refer to Old Ahwatukee as “Ahwatukee” and “Ahwatukee Foothills” as a separate entity. So, for clarity, when we use the term “Ahwatukee” we are referring to the entire area designated “Ahwatukee Foothills,” including (85044, 85045, and 85048) unless otherwise noted.