Phoenix Metro Area Market Update Sept. 2021
According to The Cromford Report, the market is sending mixed signals right now. The contract ratio* is up, indicating that the market is heating up. However, the average sale price per square foot for closed sales is slightly down, indicating that the market has cooled over the last month.
* Contract Ratio indicates how “hot” a market is. It specifically measures the number of completed sales contracts relative to the supply of active listings. If this number rises then it is a sign of growing contract activity and a positive signal for sellers. Conversely a falling number is a sign of a weakening market – either supply of active listings is increasing or contract activity is slowing, or both.
One thing is for sure, demand and purchasing from iBuyers has intensified. iBuyers have purchased so many homes in the last month that they are significantly distorting the market dynamics. These homes will soon come back into the market as inventory. But in order to gain market share, iBuyers have made offers well in excess of what they were paying in Q1 and Q2. And during this same time, appreciation has been weaker and normal buyers have become more sensitive to pricing. So selling those homes over cost could be tricky. Stay tuned to see how this plays out!
What is an iBuyer?
An iBuyer is a company that purchases homes directly from owners almost instantly using technology that determines fair market value. This is done online and often sight unseen, which makes for a quick sale for sellers. Some iBuyers are able to offer cash to a home seller in less than 24 hours. Sometimes, the deal can close in just a couple of days, and often the transaction happens entirely online.
We are full-time, experienced Realtors working in Queen Creek and the surrounding areas. With decades of East Valley real estate experience under our belts, we are here to answer any questions you may have. Please do not hesitate to reach out to April Anderson at 480.272.1977.
We’re looking forward to hearing from you soon!
United Brokers Group
21321 E Ocotillo Rd E-111
Queen Creek, AZ 85142