July 2, 2020 Published in SAAR News

By Fletcher Wilcox | V.P. Grand Canyon Title

Greater Phoenix Single Family Resales in June 2020 thumped May by 1,940 sales.

June sales were the highest so far this year — beating the previous record set in March by 615 sales and falling only 91 sales behind June 2019 (6,827).
Source: ARMLS

Greater Phoenix
The Greater Phoenix Median Purchase Price (MPP) of a Single-Family Resale hit a new high this June. The June MPP of $339,900 beat the record of $335,000 set in both March and April. The MPP in May dipped to $327,000 while the June 2020 MPP of $339,900 was $32,615 or 11 percent higher than June 2019 ($307,285). New monthly listings for June of 5,763 were 335 or six percent less than new monthly listings in May.

Scottsdale
In June, Scottsdale had its best month-of-the-year for the number of Single-Family Resales. There were 521 sales in June compared to 318 in May. Previously, March had the most at 485. The Scottsdale MPP was $635,900 in June. This is $6,400 higher than in May ($629,500), but not as high as April ($710,000). New Monthly Listings in June (507) were about break even with May (505).

Comeback Kid: The Luxury Market
June Luxury Sales jumped over May. There were 219 sales in June on single-family homes $1M and up compared to 136 in May. That was an increase of 61 percent in just one month!
Source: ARMLS

July sales will be even better than June’s. So, Get Out There and Sell!

And if you need help converting housing statistics into client messages for video, social media and more, be sure to register for Influencer 3: Sharing Data on July 23, 2020.

Fletcher R. Wilcox is V.P. of Business Development and a Real Estate Analyst Grand Canyon Title.  Grand Canyon Title is a subsidiary of Fidelity National Financial (FNF).  FNF is ranked 375 on the list of Fortune 500 Companies.  Fletcher may be reached at fwilcox@gcta.com or 602.648.1230.

Fletcher is on the Board of Directors at the Scottsdale Association of REALTORS® (SAAR). In 2020 he started an Influencer Marketing series for real estate agents at SAAR. He is V.P. of Networking for the Arizona Mortgage Lenders Association. He is a member of the Arizona State Escrow Association and the Arizona Association of REALTORS.

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, the Phoenix Business Journal and AZ Big Media. 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.  He teaches residential contract law to both real estate agents and escrow officers.

June Best Month in 2020 for Sales and Median Purchase Price 

June sales of single family resales in Greater Phoenix (Maricopa County) were almost 2,000 more than in May.  There were 6,736 sales in June compared to 4,796 in May.  The number of sales in June were the most for a month this year beating the 6,121 sales in March.  The number of sales in June of 2019 were slightly higher at 6,827.  

The median purchase price of a single family resale in Greater Phoenix reached a new peak this June.  The June median purchase price of $339,900 eclipsed the previous record of $335,000 set in both March and April.  The June 2020 median purchase price of $339,900 was $32,615 or eleven percent higher than June 2019 when it was $307,285.  The median purchase price in May dipped to $327,000 after some panic selling. 

The median list price of a single family resale also reached a new peak in June.  It was $359,000.  The previous high was in May when it hit $350,000.  It had dropped to $339,990 in April after some panic selling.     

The number of new monthly listings for single family resales were a problem before thecoronavirus storm and continue to be.  The number of June new monthly listings of 5,763 were the lowest for a month in 2020.  Traditionally June is the month of the year that starts the downward trend for new monthly listings.  What is different this year is while new monthly listings are seasonally decreasing, increasing is demand to purchase as the economy opens up. 

How homes were purchased. In June sixty-one percent of single family resales were purchased with a conventional loan or jumbo loan, seventeen percent with an FHA loan, eight percent with a VA loan.  There was a big drop off in cash purchases in June 2020 compared to June 2019.  Cash purchases in June 2020 were 629 or nine percent of all purchases compared to June 2019 when they were 1,151 or seventeen percent of all purchases.       

Luxury Market Roars Back in June

June 2020 sales of $1,000,000 and over made a comeback.  There were 219 sales this June at $1,000,000 and over compared to 136 in May.  This is an increase of 83 sales or sixty-one percent in just one month! 

Conclusion and July Prediction

For the last three years, from 2017 through 2019, the month of May had more sales than June.  With the recent event, patterns have changed.  In 2020, May is the month with the least number of sales, while June is the month with the most sales.  At the start of 2020, before the coronavirus storm hit, new monthly listings of single family resales were down year-over-year.  In January 2020 they were down fifteen percent from January 2019.  Lack of single family resale inventory will continue to be a challenge.  This lack will force buyers to travel further out in Greater Phoenix to buy a new home.  Also, because of the current coronavirus environment some sellers are going to wait it out before they list.  At the same time, there are buyers who no longer want to wait and want to own now.  Since our traditionally selling season took a hit this year, expect buyer demand to continue later into the season.  In fact, the number of July sales and the median purchase price will likely exceed the good June numbers.  If you like the information in this article go to www.TheWilcoxReport.com and sign up for more updates.  The information in this article was compiled from ARMLS and is for single family resales in Maricopa County.              

Fletcher R. Wilcox is V.P. of Business Development and a Real Estate Analyst Grand Canyon Title.  Grand Canyon Title is a subsidiary of Fidelity National Financial (FNF).  FNF is ranked 375 on the list of Fortune 500 Companies.  Fletcher may be reached at fwilcox@gcta.com or 602.648.1230.

Fletcher is on the Board of Directors at the Scottsdale Association of REALTORS® (SAAR). In 2020 he started an Influencer Marketing series for real estate agents at SAAR. He is V.P. of Networking for the Arizona Mortgage Lenders Association. He is a member of the Arizona State Escrow Association and the Arizona Association of REALTORS.

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, the Phoenix Business Journal and AZ Big Media. 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.  He teaches residential contract law to both real estate agents and escrow officers.

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Members of Scottsdale Area Association of REALTORS join us for guest speaker: HonorHealth CEO | Todd LaPorte

Register:

https://www.scottsdalerealtors.org/event/member-connect-virtual-happy-hour-4/?instance_id=2643

He will discuss:

– what the current status of COVID-19 in Scottsdale is

– what can our members do to promote best practices in dealing with the public

– how can agents speak to clients about our health care system, its preparedness, etc.

Fletcher Wilcox will give a short market presentation with good news! Find out the new record set in June for real estate!

Summer Cocktail Demo: Frank Grossman

Prize Giveaways!

Fletcher R. Wilcox is V.P. of Business Development and a Real Estate Analyst Grand Canyon Title.  Grand Canyon Title is a subsidiary of Fidelity National Financial (FNF).  FNF is ranked 375 on the list of Fortune 500 Companies.  Fletcher may be reached at fwilcox@gcta.com or 602.648.1230.

Fletcher is on the Board of Directors at the Scottsdale Association of REALTORS® (SAAR). In 2020 he started an Influencer Marketing series for real estate agents at SAAR. He is V.P. of Networking for the Arizona Mortgage Lenders Association. He is a member of the Arizona State Escrow Association and the Arizona Association of REALTORS.

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, the Phoenix Business Journal and AZ Big Media. 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.  He teaches residential contract law to both real estate agents and escrow officers.

On June 25 from 1:00 to 2:30 p.m. find out about residential real estate nationally and locally. Find out about issues affecting Arizona real estate.

As a board member of the Scottsdale Area Association of REALTORS, I, Fletcher R. Wilcox, invite you as my guest to listen to National Association of REALTORS Chief Economist Lawrence Yun, NAR President Vince Malta and Arizona Association of REALTORS Govt. Affairs Director Matt Contorelli.

You do not need to be a member of the Scottsdale Area Association of REALTORS to sign up! To register https://www.scottsdalerealtors.org/event/scottsdale-realtors-town-hall-meeting/?ct=t%28The_SAAR_News_June+21_2020%29

Fletcher R. Wilcox is V.P. of Business Development and a Real Estate Analyst Grand Canyon Title.  Grand Canyon Title is a subsidiary of Fidelity National Financial (FNF).  FNF is ranked 375 on the list of Fortune 500 Companies.  Fletcher may be reached at fwilcox@gcta.com or 602.648.1230.

Fletcher is on the Board of Directors at the Scottsdale Association of REALTORS® (SAAR). In 2020 he started an Influencer Marketing series for real estate agents at SAAR. He is V.P. of Networking for the Arizona Mortgage Lenders Association. He is a member of the Arizona State Escrow Association and the Arizona Association of REALTORS.

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, the Phoenix Business Journal and AZ Big Media. 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.  He teaches residential contract law to both real estate agents and escrow officers.

It appears residential sales of single family homes in Greater Phoenix (Maricopa County) are on their way to a V-shaped recovery and that the median purchase price may reach an all-time high this June.

June to Rival March for 2020 Month with Most Residential Sales – Sales Hit Bottom in May

March of 2020 is the month this year with the highest number of sales of single family resales in Greater Phoenix.  There were 6,122 sales in March.  Sales this June may end up higher than March sales. 

June of 2020 has twenty-two business days to close a transaction or sale. Business days are defined as the number of days in a month in which both the escrow company that is closing a sale, and the county recorder in which a property is located are open on the same day. For a transaction to close the escrow company sends the necessary documents to the county recorder to be recorded. Once the county recorder records the documents the transaction is closed and the sale is complete.

For the first eleven business days or first half of June, June sales are running a close second compared to March. There were 2,748 sales in the first eleven business days this June compared to 2,839 sales in the first eleven business days in March. With all the pent up demand June may overtake March in total sales.

NOTE: The focus of this report is the sale of single family resales in Greater Phoenix (Maricopa County).  The information in this report is compiled from the Arizona Regional Multiple Listing Services, Inc. (ARMLS).  ARMLS data shows that approximately eighty percent of all their sales every month in Greater Phoenix are single family resales.   

Sales of single family resales in Greater Phoenix most likely hit the bottom in May. May had 4,787 sales which were the lowest number of sales since January.   When comparing sales in the first eleven business days of May to June, there are 586 or twenty-seven percent more sales in June.  June sales appear to be forming a V-shaped recovery.  June sales most likely will be in the range of 6,100 to 6,300 sales.  Even if June 2020 sales are over 6,000, they will fall short of the 6,827 sales in June of 2019. But, hey, we are in recovery.

Median Purchase Price Going Up in June after Dropping in May

The median purchase price of a single family resale dropped in May.  In May it was $326,750.  This was a drop of $8,250 or two percent from April when it was $335,000.  It is back up in June.  For the first half of June it is $332,500.  It most likely will be higher by the end of June.  PREDICTION: When the final June results are in – the median purchase price of a single family resale may break the previous record of $335,000 set in March and April of this year. 

The median list price of a single family resale dropped in April to $339,990, the lowest of the year.  In May it went back up to $350,000 and is at $350,000 for the first-half of June.  

Inventory of Single Family Resales

With both sales and listing inventory down year-over-year the estimated months of supply has changed very little. With the recent increase in sales, active listings are down.  On June 1st, there were 7,114 active listings. On June 15^th 6,411 active listings.  There is less than a one month of supply of listings under $350,000.  For listings from $350,000 to $500,000 there is less than a two month supply.  See the table below for active listings and the estimated months of supply by price range.

Look-Out for July! It May Be a Better Month than June

Look for the V-shape to firm up in July. On June 1^st there were 4,904 single family resales under contract.  On June 15^th there were 5,556 under contract.  The majority of these will close in July.  Another reason why the median purchase price may hit $335,000 or more in June and surely in July is because median purchase price lags median list price. Currently the median list price is $10,010 higher than in April.

Boon for Builder Stocks, Housing Market Shows Early Signs of a V-Shaped Recovery BARRONS By Lisa Beilfuss June 17, 2020 10:35 am ET

https://www.barrons.com/articles/in-boon-for-builder-stocks-housing-market-shows-early-signs-of-a-v-shaped-recovery-51592404547

Median Purchase Price Single Family Resales

Active Listings and Estimated Months of Supply

Fletcher R. Wilcox is V.P. of Business Development and a Real Estate Analyst Grand Canyon Title.  Grand Canyon Title is a subsidiary of Fidelity National Financial (FNF).  FNF is ranked 375 on the list of Fortune 500 Companies.  Fletcher may be reached at fwilcox@gcta.com or 602.648.1230.

Fletcher is on the Board of Directors at the Scottsdale Association of REALTORS® (SAAR). In 2020 he started an Influencer Marketing series for real estate agents at SAAR. He is V.P. of Networking for the Arizona Mortgage Lenders Association. He is a member of the Arizona State Escrow Association and the Arizona Association of REALTORS.

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, the Phoenix Business Journal and AZ Big Media. 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.  He teaches residential contract law to both real estate agents and escrow officers.

Scottsdale Area Association of REALTORS® members join us Thursday, June 11 at 4:30 p.m. for a virtual happy hour. Rachel Sacco and Stephanie Pressler from EXPERIENCE SCOTTSDALE will speak on tourism. I will give a short presentation on “A Market in Recovery, Good Job Report, June Predictions.” To register :https://www.scottsdalerealtors.org/event/member-connect-virtual-happy-hour-3

Join me today at 4:30 p.m. for the Phoenix Chapter of the National Association of Professional Mortgage Women I will present on “A Market in Recovery, Job Report & June Residential Predictions for Greater Phoenix.” This is a zoom presentation.  https://us02web.zoom.us/j/87253765690

JUNE 5 BREAKING NEWS! Today the U.S. Bureau of Labor Statistics reported that May had 2,500,000 more people employed than April. The chart below shows the increase in employment by job category. Also in today’s report:

*The unemployment rate declined by 1.4 percentage points to 13.3 percent in May, and the number of unemployed persons fell by 2.1 million to 21.0 million.

*In May, the number of unemployed persons who were jobless less than 5 weeks decreased by 10.4 million to 3.9 million.

*Employment continued decline in government, information, mining, air transportation and warehousing.

COMING SOON – MAY NUMBERS INDICATE GREATER PHOENIX HOUSING MARKET HIT BOTTOM AND NOW IMPROVING.

Join Scottsdale City Manager Jim Thompson and me for the SAAR Virtual Happy Hour! Mr. Thompson will update us on what is happening in Scottsdale and I will show numbers on sales, under contract and inventory. May 2020 numbers show good news. To register: https://lnkd.in/gwzpGmb