The summer in Arizona is usually a time when Realtors can take a bit of a load off because of lower demand compared to the rest of the year.
But the housing industry in 2020, like so many aspects of this unprecedented year, does not hold to the norms we are used to.
The summer of 2020 has turned out to be the summer of home sales.
July had a record number of closings, surpassing every July as far back as 2001, as well as broke records in dollar volume with $3.9 billion sold, according to Arizona Regional Multiple Listing Service.
Previously 2005 was the best July ever recorded at $2.9 billion. The monthly appreciation rate finished 12.5% higher than 2019 and was the fourth highest appreciation rate for July going back to 2001, according to the Cromford report.
The luxury home industry is seeing a banner year as well, with contracts over $1 million, up an amazing 93%, compared with this time last year.
Contracts between $500,000 and $1 million are up 64%. Between $300,000 and $500,000, they are up 39%. Between $250,000 and $300,000 they are up 15%, according to the Cromford Report.
One-third of homes closed were over asking price and only 15% involved any sort of seller-paid closing cost assistance; down from a high of 27% last May, according to the Cromford Report.
Half of all sellers who accepted contracts in the first week of August did so with seven days or less on the market.
Realtor Rebecca Durfey said that as far as 2020 goes, all the playbooks are out the window. She said it’s a unique and very different market and generally speaking it is very strong right now, but when the industry is going so well, people start to wonder when there will be a crash.
“We don’t anticipate a crash in the true sense of the word, but there will at some point in time be a shift,” she said. “Markets are up and down and tend to be cyclical, and I don’t expect to see big changes immediately. We are in a strong market. ...But I do feel we are starting to enter a more cautious time.”
Philip Haldiman can be reached at 623-876-3697, phaldiman@newszap.com, or on Twitter @philiphaldiman.
Meet Philip Haldiman is an award-winning journalist who most recently took first place for investigative reporting in 2023 from Arizona Newspapers Association. He joined Independent Newsmedia, Inc., USA, in 2015, covering Sun City West his first year. Since 2016, he has covered the city of Peoria. Prior to coming to INI, he was a reporter with The Arizona Republic for seven years, covering numerous cities throughout the Valley. Before that, he was a freelance writer.
Community: Haldiman spearheads the Peoria Independent Hometown Heroes Awards program, honoring local individuals and businesses that give back to the community. He has hosted local candidate forums over the years and is a member of the Society of Professional Journalists. Haldiman also served as a member of the Journalism Program Community Advisory Board at Glendale Community College. Outside journalism, Haldiman served as a member of the city of Peoria Complete Count Committee for the Census, 2019-2020. Lastly, he has served as a member of his HOA governing board since 2021.
Education: Arizona State University with a BA in Journalism and Mass Communications and a BA in Theater.
Random Fact: Haldiman is a fourth-generation Arizonan as well as wrote and produced an autobiographical comic book about his time spent in Hollywood and his life as a cult film star.
Hobbies: He enjoys hiking Arizona’s mountainous landscapes and is currently working on a play for the stage.
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