The Grand Canyon and amazing summers are two things that the state of Arizona is famous for. With a population of over seven million, Arizona is not only a tourist’s paradise but also an excellent place for anyone planning to settle down.
The real estate market in Arizona is continuously changing, and it’s essential to have a clear understanding of the best seasons to sell your house in Arizona. In this article, I offer some excellent tips on the best time to sell your house in Arizona.
When the Inventory Is Low, i.e., A Seller’s Market
Metro Phoenix is the second-fastest-growing city in the United States. It is also home to 1.6 million people. It usually takes an average of sixty-four days for a house to sell in Arizona. As of last month, there were close to 13,952 homes for sale in Phoenix AZ down 35.5% from 2019.
An increase in population creates a high demand for both rental and purchase housing. During this time, the prices will skyrocket if the supply doesn’t meet demand. According to Redfin, the housing market in 2019 only had a two month supply of homes for sale in Phoenix, AZ, which made it challenging for home buyers.
This imbalanced market of low supply is what is called a low inventory. Like in February this year, the housing market for homes around the valley dropped to 42.7 percent. This increased the median values of houses for sale in Arizona to $400,000 up by a whopping 14.3 percent since 2019.
The low inventory makes it a seller’s market, and today houses in the valley are selling at a median time of 48 days as compared to the typical 64 days. Competition is exceptionally high for starter homes due to their low-price range.
Unfortunately, there’s a lot of uncertainty in the housing market due to COVID-19. This is due to the fear of an economic recession similar to, or even worse than, the one in 2009 and 2010; due to the Swine Flu pandemic.
Mar Roberts, the Arizona Realtor Association president, stated that the Coronavirus pandemic had impacted the real estate business. Today realtors are using social media to showcase the houses that are for sale in Arizona. This includes virtual tours with a 3600 view of the property.
She further stated that some buyers still believe in physical open house viewing. As a result, she advises realtors to ensure all doors and windows are open to prevent prospective buyers from having to touch anything.
According to Tucson real estate broker Karl Kretzel, this is currently the best time to sell a house, especially if it’s an unwanted property. Unfortunately, this is also an unusual territory since buyers may want to hold off for better deals that may arise in the coming months.
There have been so many cancellations on Airbnb rentals. Therefore, there is a chance that they may be converted into houses for sale in Arizona.
Seasonally, More Homes Sell in Spring, But Seller Competition Goes Down During Fall
According to the Washington Post, the best time to sell a house is in spring and early summer, between May and July. You could be wondering why anyone would want to shop for homes for sale in Phoenix AZ, with the scorching heat. The main reason is that this is the opportune time for families to move when the kids are not in school.
Springtime being the peak season means that buyers can afford to be picky since there are more houses on sale. Also note that the median sale price for houses in Phoenix Arizona, differs from other cities.
For instance, the best month to sell a house in Tucson is in April, for Scottsdale, it’s December and June for Phoenix. Once a house is listed on the Multiple Listing Service (MLS), the number of days it takes for one to sell is essential.
Sellers should typically list their houses when there are a low median “days on the market” (DOM). You should, therefore, talk to your real estate agent to give you an accurate read on the market if you are planning to put your house up for sale.
Although spring is the peak season, sellers should also consider selling in fall as it is more favorable, because there’s low competition among sellers due to the tapering of real estate activities.
Furthermore, selling during fall means that prospective buyers are more serious because they are highly motivated to sign a contract very fast to avoid disrupting their children’s school routines. Selling during fall is safer than spring because there are fewer home burglaries.
The cost of fixing your home before selling it is also lower during the fall season, and you have access to maintenance experts since it’s no longer the busiest season.
Sell Your House Once You’ve Fully Understood the Market
Sometimes life’s unexpected situations require you to sell your house. It could be that you got a new job and you need to move. It could also be that you needed to change neighborhoods. All these reasons are valid; however, there are few things you need to take into account.
Aside from considering your needs, you must determine whether you have positive equity in your current home. Finding out your home equity matters because it lets you know how much your home is worth.
Positive equity is when your home is worth more than you owe. Paying your mortgage is one way to increase your home value. You should find out from a real estate appraiser the valuation for houses in Phoenix Arizona, before selling your house.
The best time to sell is, therefore, when you have cleared your mortgage and are in good financial shape. Aside from understanding the mortgage interest rates, you need to understand the household incomes.
Knowing the housing affordability index lets you know if it is the right season to sell your house in Arizona. When major stocks fall, people’s wealth declines, so they tend to spend less. You should, therefore, consider whether you should be putting your house up for sale during this season.