Ahwatukee-Foothills Real Estate Update – October 1, 2020
This post is based on Allen Henderson’s Ahwatukee-Foothills Real Estate Market Update that will appear in the Ahwatukee Foothills News, on October 7, 2020.
Welcome to the Ahwatukee-Foothills, October 1, 2020, Real Estate Update.
A review of the real estate market, September, monthly snapshot shows the Ahwatukee-Foothills average sale price is increasing. The number of units sold was comparable to the number of units sold in the same period last year. Properties are selling in a matter of days. 154 properties came on the market in September and 45 or 29% of those were under contract in less than 7 days. In this fast market, 59 or 38% were under contract in less than fourteen days and 100 or fully 65% of the properties listed in September were under contract in under 30 days. Even in this hot market, 25 or 16% of the properties that came on the market and went under contract in September required a price reduction to get an offer and contract. These sellers obviously realized that their listing price was too high and recovered quickly by reducing the list price to get an offer.
So let’s talk about the other 50 or so properties that came on the market in September that are still looking for a buyer willing to make an offer! First, the fact that these properties are still waiting for an offer is proof that 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 make crazy offers, 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 a property at a price that is unreasonable and unsupportable. 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.
Some properties have condition and/or location issues that can increase marketing time and the time to get an offer. In the case of properties with condition issues, the seller can correct the condition issues or reduce the price. In the case of a location issue, sellers can’t change the location but they can always adjust the price to in the game and get an offer. In the case of properties with unresolved condition issues and/or location issues, the “Pink Elephant” in the room is the asking price that no one wants to discuss. Only a price reduction will overcome buyer resistance to unresolved conditions or location issues. If ANY property doesn’t get an offer go under contract in a reasonable amount of time, it is ALWAYS a pricing issue, regardless of condition or location. The price cures all other issues. 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.
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The August real estate sales snapshot for Ahwatukee-Foothills indicates that 144 properties sold in September and the average sale price rose to $441,482. This is up 13% over the same period in 2019 when the average home value was $390,716. The August number of units sold is about the same with 144 units sold in August 2020 versus 139 for the same period in 2019. Homes sold faster in 2020 with average days on market dropping to 32 days versus 54 days in 2019. Buyers are continuing to step up with higher offers to get prime properties. However, as we said above, buyers are not willing to pay crazy prices to get a property. As a result, the number of September listings that required a price reduction to get an offer declined to 36 units or 25% of the closed listings. Historically, about 40% of properties require a price reduction to get a sale, however, in this market, fewer properties are requiring a reduction to get an offer. Prices are rising and properties are continuing to appraise at contract prices. It is a great time to sell an Ahwatukee property.
Moving from the monthly snapshot of the market to the bigger picture, in the January to September 30th time frame, the average Ahwatukee sale price was $408,596. This is up 8.9 % over the same period in 2019 when the average sale price from January to the end of September was $375,280. The number of units sold continues to lag behind 2019 sales results as numbers fell 6% from the 1,285 units sold in the same period 2019 to the 1,213 units in 2020. The active listings inventory in the Ahwatukee real estate market is staying steady at 100 units this month. This market remains “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.
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 August time frame, dropped from 62 days in 2019 to 46 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 that 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 are 100 active listings in the Ahwatukee market today. We are averaging 143 sales per month in 2020. With 144 units sold in September, the 100 active listings will be depleted is less than 21 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.
This month I am going to go into more detail about property sales and values in the various price ranges. The “Million Dollar” plus market recap follows.
There were two sales of properties over a million dollars in the September 1, to September 30, market. One closed at $1,125,000. It was on the market for 59 days. The other was a Tapestry Canyon property that closed at $2,149,000. It was on the market 215 days. Today there are 25 Active listings for million-dollar-plus properties. There have been 22 sales of million-dollar-plus properties at an average sale price of $$1,293,614. in Ahwatukee in 2020. They were on the market an average of 171 days and 50% required a price reduction to get a sale. The average price reduction for the 22 Million Dollar plus property was $130,364. to get an offer. The largest price reduction to get an offer and a contract was $550,000. OUCH!
In the luxury market from $600,000. to $999,999., there have been 93 sales in 2020. The average sale in this price range was $700,301. Marketing time on average was 68 days.
In the $500,000. to $599,000. price-range there have been 137 sales at an average price of $546,552. in 2020. Marketing time on average was 66 days.
In the $400,000. to $499,000. price-range there have been 239 sales at an average price of $440,788. in 2020. Marketing time on average was 44 days.
In the $300,000. to $399,000. price-range there have been 474 sales at an average price of $349,287. in 2020. Marketing time on average was 44 days.
In the under $300,000 market, there were have been 276 sales at an average price of $242, 396. in 2020. Marketing time on average was 34 days.
In summary, the highest number of sales (474 units) was in the $300,000. to $399,000. price-range. Further, 989 properties or 81% of the total property sales thus far 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. There has never been a better time to sell an Ahwatukee property for a great price and quickly. It is an unprecedented opportunity to sell an Ahwatukee property. 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.