April 2022 Arizona Real Estate Market Update
Today we are talking about:
1. The CURRENT Arizona Real Estate Market 2. What the Future Market looks like 3. How we win for clients NOW!
First the current market using the numbers from April 6th 2022
These numbers are encouraging because while the homes sell quickly, we turn over the inventory every two weeks, it also means that homes are being listed consistently and more often than last year. Last year we had LESS active and LESS closing every month... however NOW there are MORE homes and MORE closings (nearly double from last year). So IF you know someone who gave up, NOW is a great time to get back to looking for a home! Additionally we have secured nearly 40 contracts ALREADY in 2022! Including purchases, move ups and even first time buyers. While many agents are frustrated, we at The Drew Team are putting our experience to work in helping YOU win!
Next let's explore why the market is moving so fast, home selling so quickly and is NOT likely to change anytime soon.
Many people are focusing on how this market feels similar to 2007-2008 in that home values have escalated quickly and homes are selling fast. Those two facts are similar today, but the reason behind those facts are completely different. Here are 3 graphics to demonstrate why it is different and why the market is unlikely to change quickly.
1. While home values have increased dramatically over the last 2 years, they were undervalued for nearly a decade prior, so that, only after these dramatic increases are we IN LINE with the historical AVERAGE value increase to be expected in the real estate market.
2. We have a lack of inventory. As you can see above from 2008-2017 the number of new homes built were not enough to account for population growth nor for any local variances. In Arizona we didn't build enough for the existing poplulation, for population growth AND CERTAINLY the influx of people from the West Coast. NOW this cannot be quickly corrected because there is BOTH a shortage of material and labor. We are many years from any hope of correcting this shortfall of homes.
3. Mortgages are in much better condition, the guidelines have been much more strict and so we have a historically HIGH number of homes with strong equity value and extremely LOW number that are "under water." As discussed above, home have finally attained the value to put them inline with historical averages and that means even homeowners who difficult circumstances can sell their home for more than they own - thus the home foreclosure rates are miniscule.
BONUS - Arizona has more people employed than before the Pandemic shutdown. Even eliminating seasonal farm work, we have over 35,000 MORE people employed than in Feb 2020! Plus we have more manufacturing & technology companies committed to opening operations in Arizona over the next couple of years. Add up all the above information... we are YEARS away from there being a significant shift in the market. Thus seller's remain in strong position and buyers will need tools to compete. So...
How is The Drew Team creating opportunities for YOU to WIN in this market
There are a lot of ways we are different that most agents, we also have tools most do not, however let me highlight a few ways that are allowing us to help our clients win right now!
- Having access to homes that are not yet on the market, NEGOTIATING early access
- Relationships with other agents, creating advocates that WANT to work with us
- Leveraging our past success of nearly 1000 closed transactions
- Strong partnerships with our lenders, inspectors and investors
- Crafting unique marketing plans to maximize offers for our sellers
- Creating stategic plans that allow our buyers to overcome even cash offers and investors
And the list goes on, but what matters is we customize a unique plan to REACH YOUR GOALS!
As you can see below we were the top agents in Queen Creek, San Tan Valley, Florence and beyond while serving Arizona!
So if you are looking to make a move this year reach out to us, Robin & Steven Drew, Robin McAvoy, Casey Hurlburt, Tom Walton and our amazing admin Nancy Horn are ready to help you win!
Of course we also have some special programs for our First Responders too:
Thanks to our partners who make the First Responder program possible: