Phoenix – Ahwatukee-Foothills Real Estate Market Update – May 1, 2020
The Ahwatukee-Foothills Market Remains Strong Despite The Corona Virus?
Once again, the Ahwatukee-Foothills market has remained strong in April, despite the downward national trend and they Corona Virus. The number of units closed is up and the average price took a surprising leap in April.
Ahwatukee-Foothills’ property sales in April stayed strong with 122 closed listings at an average sale price of $417,095, This comes on the heels of the $422,623. recorded in March. The average sale prices recorded in March and April are outpacing the average property value of $374,840. that we saw in the 2019 Ahwatukee Foothills real estate market.
The sales that closed in April probably went under contract in February and March. Despite the economic disruption caused by the ongoing Corona Crisis, the April sales figures are surprisingly robust. The 122 properties that closed escrow in April are down from the 160 properties that went under contract in March, however, the April number more closely mimics our usual monthly average number of sales. I would call the 122 closed listings recorded in April normal for our market. There are 86 pending sales as of May 1st as we enter the month. There were 94 pending sales when we did our market analysis last month and we predicted that, with reasonable market activity, the 94 pending sales would appear to predict at least 120 to 130 closed sales in the Ahwatukee-Foothills market in April. This proved to be true. Based on the April results, the current 86 pending sales, with reasonable market activity, should result in at least 120 to 130 closed sales in the Ahwatukee-Foothills market in May.
The average days on market for an Ahwatukee-Foothills closed listing was 41 days. This is down from the 51 average days on the market in March and the 67 average days on market February. The number of days on market is trending downward as the year progresses. The listing inventory had been hovering around 130 units for the past several months. The active listing inventory increased noticeably to 160 units on March 1 and the May 1 inventory has climbed to 181 units. The 181 units currently active is a 1.5 month supply when compared to the 122 units sold in April. The inventory is creeping up, however, a 1.5 month supply indicates that we are still in a very strong seller’s market. We are a long way from a balanced market which is considered to occur when there is a six-month inventory of active listings.
Last month we noted that 22 of the active listings were million dollar plus properties. As we said, we don’t typically take note of the number of million-dollar-plus properties on the market, however, we noted that the 22 million-dollar-plus listings are a disproportionately high number for Ahwatukee-Foothills. This month the number of million-dollar-plus listings remains at 22 units, however, 2 of the April closed sales were for million-dollar-plus listings. We will continue to watch the luxury market for trends.
We stated last month, that no one could have predicted the impact the Corona Virus is having on our world. Despite the economic shutdown, pressures on our supply chains and the impact of the Virus on our population, the Ahwatukee-Foothills real estate market appears to b be strong and performing well.
Despite the surprising and positive good news, it is important to note, that it is not business as usual in the Ahwatukee-Foothills real estate market. We are still listing properties and we are experiencing surprising and serious buyer activity and showings as our listings come on the market. Properties are selling faster than anticipated. Prices are up. However, it is extremely important that agents, sellers, and buyers use vigilance and caution as they conduct themselves in pursuit of their real estate endeavors.
It is critical for buyers, sellers, and agents to respect and follow the guidelines for social distancing. The use of a mask in public is becoming increasingly more the norm. The use of hand sanitizers and efforts to sanitize light switches and doorknobs are increasingly important. We encourage our buyers to drive in their own vehicles while we drive in our vehicle to protect from any contagion. We are encouraging sellers to leave the property for showings and to turn all of the lights so buyers and agents don’t have to touch light switches in the property. We encourage the buyers to enter the property ahead of us and we follow at least six feet behind. This provides the potential buyers an opportunity to see the property without the worry of social distancing and constitute safe practices to protect the buyer, seller and the agent. We are encouraging sellers to sanitize light switches and doorknobs on their return to further protect against infection.
It is not business as usual, in the Ahwatukee-Foothills real estate market, however, as the numbers indicate, the real estate market is active, properties are being listed and sold and prices are increasing. It is still a great time to buy or sell a property in the Ahwatukee0Foothills real estate market. More importantly, it is possible to conduct a real estate transaction safely, even in the midst of the pandemic, if everyone involved conducts themselves prudently and follows the established guidelines to protect themselves and others. As always, it will continue to be especially interesting to observe where this market goes in the coming days, weeks and months. Stay Safe, be Blessed, wear a mask, social distance and wash your hands!
Pick your real estate agent wisely!
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 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.