Phoenix – Ahwatukee-Foothills Real Estate Update -September 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 September 16, 2020.
The August real estate market monthly snapshot shows the Ahwatukee-Foothills real estate market continues to expand. If we look at the August real estate sales results, the average sale price in Ahwatukee rose to $423,546. This is up 10.3% over the same period in 2019 when the average home value was $384,114. The August number of units sold is down 11% with a decline to 127 units versus 141 for the same period in 2019. Homes sold faster in 2020 with average days on market dropping to 42 days versus 59 days in 2019. Buyers are continuing to step up with higher offers to get prime properties. As a result, the number of listings that required a price reduction to get an offer declined to 29% 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, the January to August average Ahwatukee sale price was $404,172. This is up 8.2 % over the same period in 2019. The number of units sold continues to lag behind 2019 sales results as numbers fell 6.7% from the 1,146 units sold in the same period 2019 to the 1,069 units in 2020. The active listings inventory in the Ahwatukee real estate market is staying steady at 109 units this month. It is interesting to note that 167 properties came on the market in Ahwatukee in August and of those 95 have gone under contract. This market is hot. Demand is high and it is safe to assume that the number of units sold in 2020 would be higher if there were more 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 48 days in 2020. Homes sold on average 22% faster in 2020 than in 2019. We can assume from this that the strong seller’s market we have seen for months is getting even stronger. This is one of the few times that we would advise sellers to list a little higher to test the market.
There was one sale of properties over a million dollars in the July 1 to August 31 market. It went under contract in 109 days versus the usual average of 181 days on market for million-dollar-plus properties. Today there are 21 listings for million-dollar-plus properties. There have been 19 sales of million-dollar-plus properties in Ahwatukee in 2020.
There are 109 active listings in the Ahwatukee market today. We are averaging 133 sales per month this year. With 127 units sold in August, the 109 active listings will be depleted is less than twenty-five 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.
Interest rates remain at record lows. Money is available and it is inexpensive. It is bringing out buyers in record numbers. More importantly, properties are appraising at contract prices. As we indicated last month, the robust Ahwatukee real estate market indicates that consumer confidence is high despite the virus and political turmoil.
We anticipate the Ahwatukee and Arizona real estate market is going to continue to grow. Renowned Arizonan economist Elliott Pollack, CEO of Elliott D. Pollack & Co. has stated that “The state is third in job growth. Greater Phoenix is third out of 36 major metropolitan areas for employment growth.” Despite some predictions of rising housing foreclosures due to the economic impact of the Corona Virus, the anticipated job growth is expected to offset any major impact in our market.
The economic outlook is strong. Demand is high and increasing, for homes in the Phoenix and Ahwatukee real estate market. It is an unprecedented opportunity to sell an Ahwatukee property.
If you are planning to sell your Ahwatukee home, you probably have questions about the best way to get your home ready for sale. I am frequently asked, “What do I have to do to get my Ahwatukee-Foothills Home Ready For Sale?”
If you have been thinking of selling your home, you have probably already started making a list of things you need to do to get it ready for showing. You might not have much to do or you may have a lot of projects. If your objective is to get the highest price possible for your property, you have to make your property shine.
In good markets and bad, buyers will make offers on the best property they see during their home search. You want your property to be the best one they see. So how do you make it the best property they see on the day they make an offer?
First, you have to make any repairs that are required. If you have paint that is peeling, carpets that are stained or even cracks in the ceiling, savvy buyers will think you didn’t take care of your house. These minor deficiencies are exaggerated in the mind of the buyer and they will move on to the next best property, without making an offer on your property. Be sure to go through your property with your real estate professional to determine the repairs that must be made.
Second, staging your home is critical and staging starts at the curb. The buyers will start formulating opinions about your home as soon as they first see it, which is from the curb. That first impression can make or break their opinion about your home. You have to make their first impression as appealing as possible. Make sure the grass is cut and shrubs and trees are trimmed. Plant some flowers or have flower pots. The front door is critical. Make sure your door is freshly painted or refinished. In the interior, make it look like a model home. Remove any clutter and your personal items and make it look as much like a model home as possible. You want the buyers to be able to visualize their furnishings in the property and feel like they can move right in and start living.
Third, make any cosmetic changes that need to be made. Touch up all paint or repaint rooms that need it. I know your son or daughter loved that black or bright red wall in their bedroom, but paint it a neutral color. Some buyers will not be able to see beyond it. And take the posters down! You don’t want to give a buyer any reason to move on down the street to the next 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, please feel free to call me.
The Ahwatukee-Foothills real estate market remains a strong sellers’ market. It is an unprecedented opportunity to sell an Ahwatukee property.
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 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.