According to The Cromford Report, the greater Phoenix residential real estate market now “favors sellers to the greatest extent since 2005.” One of the main contributing factors? Available housing inventory for sale in the MLS is at its lowest level since that time.
For example, within the city limits, Phoenix only has 3,002 active residential listings this week. You would have to go back to 2004 (2,759 active listings) and 2005 (2,256 active listings) to see fewer homes for sale during the third week in August.
Add to the mix the lowest mortgage interest rates in the last 3 years, strong wages and rising rents. Competition among homebuyers around greater Phoenix then comes clearly into view.
That buyer competition is increasing the number of listings that receive multiple offers and those that sell for over asking price. In July 2019, 19% of closed MLS transactions recorded selling prices that were over the asking price. It is the highest reading since mid-2013.
The chart above used by permission. ARMLS® Copyright 2019.
Those are the two best words in English, ‘Bidding’ and ‘war’. – Evan Daugherty, American screenwriter and director of Snow White and the Huntsman