REPORT HIGHLIGHTS
May 2019 New Sale Price Record for a Single Family Resales in Maricopa County (Greater Phoenix).
The Number of Sales in May 2019 was the Highest Number since June 2011.
Comparison of Sales in May 2019 to May 2018 by Price Range.
This report was published in the July 2019 Edition of the Arizona Journal of Real Estate & Business.
For the first time ever, the sale price of a single family resale home in Maricopa County (Greater Phoenix) ended over $300,000 for a month. It was $308,000 in May.
Why does the sales price keep going up?
Companies are going to where the people are going. For the third year consecutive year, Maricopa County gained more people than any other county in the United States. Because of this companies are moving here because this is where people are moving. People are moving here because this is where companies are moving. It is a momentum playing off each other, and I see this continuing. Both people and jobs will continue to fuel the demand to own a home.
ARE You Moving to Greater Phoenix? If Yes, Let Me Know and I Will Match You with a Real Estate Agent. You need an Agent Who Knows Your Market. This is Important Because of Limited Inventory. Contact me, Fletcher Wilcox, at Fwilcox@gcta.com or 602.648.1230.
For the second month in a row the year-over-year slow-down for sales of single family resales has ended. Sales of single family resales in Maricopa County (Greater Phoenix) in May 2019 were 7,525. This was 327 more or 4.5% higher than May 2018. Sales were also higher in April 2019 over April 2018. Previous to April 2019, sales were down year-over-year for eight consecutive months starting in August 2018. See Table one. Another highlight for May 2019 is that the 7,525 sales is the highest number of sales for a month since June 2011 when there was 7,790 sales. But in June 2011 the median purchase price for a single family resale was $126,500 compared to $307,500 in May 2019.
May 2019 Sales by Price Range Compared to May 2018
When comparing sales of single family resales in May 2019 to May 2018 we see a substantial decrease in sales under $200,000. There were 349 less sales in May 2019. A reason for this decrease is that since purchase prices keep going up there are just less homes for sale in this price range compared to last year at the same time. In almost every sale price range at $250,000 or above we see the reverse in May 2019. There were 679 more sales at $250,000 or above this May over last May. Sales in the $200,000 to $249,999 price range were break even this May compared to last May.
For the First-Time Median Sale Price Over $300,000
The median sale price for a single family resale ended at $308,000 in May 2019. This is now the new month record high for the median sale price. The month with the previous highest median sale price was March 2019 when it was $297,000. Before this time, the record month was June 2018 at $295,000 and before that time we have to go all the way back to the pre-real estate recession month of June 2006 when it was $287,500.
Job Growth Update
Table four compares the number of people employed in Maricopa County in April 2018 to April 2019 by job category. There were 67,400 more people employed this April over last April. This year-over-year increase in the number of people with a job will add to the demand for housing.
Conclusion
Chart one shows the monthly median sale price for the last sixty-five months for a single family resale. For every month in Chart one the median sale price is always higher for the same month in the next year. Also take a look at the median sale price for each of the above years in January and compare it to December of the same year. What do you see? Prices most likely will continue to climb because of job and population growth. Table four shows 67,400 more people employed this April over last April. In the May 2019 edition of this Journal I pointed out that according to the U.S Census Bureau, Maricopa County was the number one county for population increase in 2018. Companies are moving to Maricopa County to seek employees because of population growth. People are moving to Maricopa County because they see companies moving here. It is a momentum playing off each other, and I see this continuing. Both people and jobs will continue to fuel the demand to own a home.
If you are a real estate agent and want some fresh ideas, contact me.
Fletcher teaches Influencer Marketing, how to influence sellers & buyers.
Fletcher R. Wilcox is V.P. of Business Development and a Real Estate Analyst at Grand Canyon Title.
Grand Canyon Title is a subsidiary of Fidelity National Financial (FNF). FNF is ranked 302 on the FORTUNE 500® list of America’s largest companies.
Fletcher is the founder of The Wilcox Report. His market analysis on residential real estate in Greater Phoenix has been mentioned in publications such as the Wall Street Journal, MarketWatch, Bloomberg News, HousingWire.com, National Mortgage News, the Arizona Republic and the Phoenix Business Journal. He has been a guest speaker on both local and national TV and radio. He served on one of the three Arizona Association of REALTORS® subcommittees which made recommendations for changes to the 2017 AAR Residential Resale Real Estate Purchase Contract. Fletcher may be reached at mailto:fwilcox@gcta.com and 602.648.1230
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