With all of the conflicting information in the news right now surrounding our Phoenix real estate market, what do home sellers really need to know?
As we mentioned in a previous video, contract activity dropped almost 49% during a six-week period between March and April. During this slowdown, many people took their homes off of the market. They weren’t sure they even wanted others to look at their homes given the COVID-19 situation. There was a slowdown in buyers entering the market as well.
That slowdown, however, has passed. Contract activity has increased lately, and this is great news for sellers. Due to this new influx of buyers, you have a great opportunity to get top dollar for your home. Keep in mind that there are fewer cash buyers out there, which means fewer investors willing to offer top dollar for homes in as-is condition.
This effect has put pressure on sellers to make more repairs to their homes or offer more concessions to buyers. Demand is high, but you’ll still have to meet buyers halfway regarding your home’s condition. Prior to the pandemic lockdown, there were far more investors willing to overlook these things, but that’s not the case at the moment.
When you specify our Phoenix market by price range, the situation changes. Our median price range is around $300,000, but if you’re thinking of listing a home above $500,000, you might not find the same opportunity as other sellers. Contract activity in this area is up compared to where it was in March and April, but it’s still down roughly 30% from the peak levels we saw in early 2020.
If you have questions about what’s happening in your Phoenix neighborhood, or any other real estate needs, don’t hesitate to reach out to us. We’re here to help.
