July 2020 Market Update
Market Summary for the Beginning of July- Data provided by Cromford Report
Here are the basics – the ARMLS numbers for July 1, 2020 compared with July 1, 2019 for all areas & types:
- Active Listings (excluding UCB & CCBS): 8,788 versus 15,422 last year – down 43.2% – and down 26.5% from 11,917 last month
- Active Listings (including UCB & CCBS): 14,279 versus 20,030 last year – down 28.7% – and down 16.8% compared with 17,171 last month
- Pending Listings: 7,933 versus 6,642 last year – up 19.4% – and up 9.8% from 7,224 last month
- Under Contract Listings (including Pending, CCBS & UCB): 13,424 versus 11,230 last year – up 19.5% – and up 7.6% from 12,478 last month
- Monthly Sales: 9,702 versus 9,476 last year – up 2.4% – and up 37.8% from 7,040 last month
- Monthly Average Sales Price per Sq. Ft.: $182.71 versus $172.17 last year – up 5.8% – and up 1.6% from $179.82 last month
- Monthly Median Sales Price: $305,000 versus $279,000 last year – up 9.3% – and up 4.1% from $293,000 last month
The numbers above represent some of the largest percentage movements we have ever seen during a single month. The market remains a long way from normal, so we should probably expect further dramatic changes over the next few months.
Supply is crashing – down 26.5% (excluding UCB and CCBS listings) in a single month – and this is the most important factor in the state of the market. Without an improvement in supply, life will become ever more difficult for buyers while sellers will be dealing with many competing offers even if demand were to decline substantially. For sellers this is a nice problem to have, but for buyers the level of competition from other buyers presents a massive obstacle to them achieving their goals. This extends to the iBuyers who have seen their acquisition numbers collapse since the first quarter. Their market share has dropped substantially as a result.
Demand has recovered from the pandemic-induced slump of April and May and is now benefitting from the catch-up effect, replacing the sales that were deferred during the second quarter. At price points below $600,000, the market is constrained by the shortage of homes for sale.
We continue to monitor the market closely along with the rising COVID numbers and their impact on current market trends and will keep you informed.
It’s heating up out there and monsoon season is officially here! Don’t forget to have water with you and don’t bring your pets on the trails as we head into a few extremely hot weeks ahead.
If you would like to chat about the market, let’s connect Text Lindsay at 480-266-7656.
Continue Reading
More from Lindsay's Blog