Record AZ Real Estate Despite Pandemic

The market just hit a new all time record for dollar volume.

At $4.126 billion, the amount closed over the last month exceeds the previous record of $4.085 billion set in June 2019.

It may seem counterintuitive to some that the record should be set during the midst of a pandemic, but the numbers don't lie. In fact the low levels of sales during April, May and June mean there is now a backlog of pent-up closings which far exceeds the norm for the third quarter. On top of a jump in closings, there is also a surge in pricing making this third quarter unlike any we have seen before.

There was a dramatic change in the mix of transactions during the second quarter of 2020, compared with any previous quarter.

Comparing specifically with the second quarter of 2019:

• Purchases for owner-occupied primary residences increased from 74.6% to 82.7% of all sales across Maricopa and Pinal County
• Purchases of second homes decreased from 10.1% to 8.3% of all sales
• Purchases by investors dropped from 10.7% to 8.1% of all sales
• Purchases by iBuyers fell from 3.7% to 0.7% of all sales

The dramatic collapse of iBuyer purchases means they are starting the third quarter of 2020 with much lower inventories than they started the second quarter..

Investors were less active during the second quarter of 2020 and cash purchases were lower than normal too - they fell from 21% to 15% of all sales between Q2 2019 and Q2 2020.

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Beyond record breaking volume we're seeing fewer investor and iBuyer purchases; more owner-occupied sales; and more buyers holding onto their cash. No big surprises. 

Talking points: 

• Record breaking Volume together with incredibly low interest rates is a definite green light to make your move if you can find a place to go!
• Also, the transaction / buyer mix hopefully translates into a fraction less competition for first time buyers (competing with investors).
• The more interesting, ongoing tracking we're doing is on Listing Under Contract - the real time pulse of the market.
• Below we see the seasonal drift, yet tracking 15% over 2019!  With everything going on, amazing news on multiple fronts.