Phoenix-area housing market booming as many pay far over selling price
PHOENIX - Real estate experts say the housing market is booming in Phoenix despite the COVID-19 pandemic and for sellers, it's a time to capitalize as offers get hotter.
Bobby Lieb, an associate broker with HomeSmart Real Estate, says sellers have the advantage currently, and buyers just have to be patient to make a deal.
"Last three or four months that I've seen in 30 years, beyond nothing you could ever prepare for. It's lunacy," says Lieb.
Arizona is booming with people moving in from out of state and Lieb says, "It just kind of creates the hype, and all of a sudden what we're seeing, the inventory was at a pretty good rate back in April or May and June. Now it's the lowest it's ever been as far as inventory goes."
The ratio of buyers to sellers is currently around ten to one, he says, and the supply of homes for sale continues to drop.
Housing inventory in Maricopa County is down at least 55% compared to this time last year, all while there's an influx of migration into the Valley.
The city of Phoenix has gained more than 80,000 residents in 2020. That's the biggest net inflow of metro areas across the country, according to Redfin.com.
The top five cities are southwestern and southern cities with much more affordable living compared to places like New York City and California's Bay Area.
Recently, Lieb says he witnessed a Californian overpay to outbid him. "My client made an offer for $1.5 million and they raised the sellers and raised the price to $1.6 million and now we're $200,000 over the value of the area."
The pandemic is also a factor for people working remotely. They move here, planning to keep a well-paying job while paying lower taxes by moving to Arizona.
Lieb likens it to a housing gold rush, but his advice to house hunters who are getting offers denied is to not give up.
"Try to be patient. Which is not one of my best virtues but you just gotta keep hangin' in there. You're probably gonna lose five or six deals before you get lucky and get that one," he said.
Leib says he's listed some homes as "coming soon" and those have been sold before being active on the market.
Tricia Amato and Bobbi Ryals, also with HomeSmart Real Estate, say demand for these homes skyrocketed with more people moving to Arizona.
"The first day it’s on the market and you’ll see six realtors waiting to get in this house and that’s simply because there is nothing else to look at," Amato explained.
At their own open house, Amato and Ryals had more than three times the usual turnout. But, the hope is that when the pandemic subsided, the market will return to a more even playing field.