Personal Goal & Phoenix Market Summary Beginning 2020
Good morning friend, :)
Man... still exhausted from last week. That was a hell of a write and post.. On my gratefulman.com's page keeps a ticker of how many times a post was read. Up until last Friday my most read post was when I retired my water features. I think year to date that has just shy of 90. Last week's post was the longest and most emotionally wrought I've done. I hope to not do that again for some time, but given it's effort this morning's update showed it being at near 300. Mind boggling and meaningful all at the same time.
My Grateful Friday messages have evolved over the last few years, today it's one of my pillars that I feel makes me me. Although it's still industry relevant, it's also turned into a public version of a diary of thoughts. Every now and then I jump online and re-read things from different times of the year. It's pretty cool :)
Since the evolution of this weekly effort I have been told by many that I should write a book or turn these messages into something. With the recent passing of Chas's mom brings up the finality of life and how things are literally permanent when we pass. Should I die before I'm ready, all of my writings would go to waste as they are only found entirely on the website... god forbid anything happen, the domain would expire and "poof" it'd all be gone.. Someday when my boys are old enough to comprehend the love I have for them, or the stresses, joys, effort and struggle a grown ass man faces.. I hope they read some of these.
I have thought about it for a good while but I'm tired of thinking and not doing. HA! So that being said, it is my goal this year [I'm actually going to write my goals this year... I'll be sure to share the important ones for further accountability] but, I plan on taking all of my gratefulman.com's posts and combining them into a book based on each year, named after the year, and having them bound into a book and printed. Hell, I'll likely do an artistic colored cover too.
This will ensure those whom I love can reflect on the random ass thoughts of a transparently vulnerable dude who writes and shares his life with anyone who will listen/read. hahah
In time! ... just need to make a plan and commit! :)
In other news!!! :)
I came across this REALLY short article on the Phoenix real estate market summary for the beginning of 2020.. damn!! I always had a feeling this is what was going on... these guys put it into so much better words than I can. I hope you find it interesting. :)
Market Summary for the Beginning of 2020
The current situation is remarkable.
Here are the basics - the ARMLS numbers for January 1, 2020 compared with January 1, 2019 for all areas & types:
Active Listings (excluding UCB & CCBS): 12,141 versus 17,339 last year - down 30.0% - and down 12.5% from 13,869 last month
Active Listings (including UCB & CCBS): 15,018 versus 19,900 last year - down 24.5% - and down 14.6% compared with 17,577 last month
Pending Listings: 4,662 versus 3,740 last year - up 24.7% - but down 20.5% from 5,864 last month
Under Contract Listings (including Pending, CCBS & UCB): 7,539 versus 6,301 last year - up 19.6% - but down 21.2% from 9,572 last month
Monthly Sales: 7,764 versus 6,457 last year - up 20.2% - and up 8.7% from 7,142 last month
Monthly Average Sales Price per Sq. Ft.: $179.92 versus $165.21 last year - up 8.9% - but almost unchanged from $179.90 last month
Monthly Median Sales Price: $289,500 versus $260,500 last year - up 11.1% - and up 3.0% from $281,000 last month
The lack of supply can only be described as shocking. A 30% decline since this time last year to reach the lowest level since August 2005. This to satisfy a population that has grown more than 20% since 2005. [DUDE!]
Anyone who thinks this severe shortage will not result in a significant rise in prices is going to have another thought coming pretty soon. The median sales price is already up 11% over the last 12 months and the average price per square foot is up almost 9% and probably heading for a double figure appreciation rate.
We note that December 2019 contained 21 working days and December 2018 contained 20, giving 2019 a 5% advantage. However unit sales were up more than 20% so making an allowance for the advantage still gives 2019 a win by 15%. The listings under contract count is less impressive. While it is almost 20% up from last year it had been almost 24% up at the start of December, so gave back a little of its lead. Only a little mind you. We are clutching at straws here to find something indicating a little cooling in the market.
Demand remains higher than normal but the Cromford® Demand Index has eased from around 107 to around 103 over the past 4 weeks. This will not make much of a difference while supply remains under half of what is needed for a balanced market.
The big hope for buyers must be for a surge in new listings arriving over the next 12 weeks. Perhaps sellers will be tempted by the higher pricing they can achieve. However if they are staying around Phoenix, they will have to pay more for their new home too.
Phoenix is currently the strongest large-city housing market in the USA and this is fueled by inter-state population movements. Retirees are a big part of that, but so are people moving here from California and other Western states for work and the lower cost of living.
Demand is likely to remain healthy despite the rising prices.
The primary question is whether we will see any change in the meager supply of homes for sale. If this is to take place it is likely to be visible over the next few weeks. There has been no sign of an improvement in new listing flows in the last several weeks of 2019. But 2020 is a new year, so we will be watching closely for signs of change.
Great read right?!!!.... man! makes me excited and stressed out all at the same time... man!... I better quit writing and go to work and get after it!! :)
I chose this picture because it reminded me of starting a new day... a new year. It looks positive, and I'll take it.
If you need a buddy to help you along this 2020 year, a shoulder to cry on, an accountability partner... or someone you need to rock an open house for you, hahaha, Chas and I have your back :)
Have a grateful Friday friend :)
PS... forgive any poor grammar or sentence structure... I didn't proof it... boys are up my ass to go to school and well... .I'm their ride! hahah