JON MIRMELLI REAL ESTATE GROUP
MARKET UPDATE
October 2021
COMING
SOON
E GROU AT
Jon Mirmelli 602.300.1900
JM
AL ES T RE
PRESENTED BY
JON M MELLI IR
P
A NOTE FROM
supply and essential materials. There is no shortage in demand, but the homebuilders cannot complete homes quickly enough. For this reason many builders are not accepting orders until much later in the production cycle so they can realize higher sales prices.
JON
OCTOBER 2021 As I write this (9/16), there are 5,500+ homes listed as active and 675 “coming soon” listings in our MLS system within Maricopa County. Three months ago there were 4,600 active listings and 675 coming soon listings – roughly a 20% increase in active listings. This may seem like a large increase, but available inventory is still only 30% of what we should be to be a balanced market. There are currently 9500+ homes under contract that have not closed so we are just below a 2 to 1 ratio for homes under contract vs. available inventory (earlier in the year we were at a 3 to 1 ratio). Over the past 30 days just under 8,000 home closings occurred in Maricopa County vs. 5,500 active listings and 9,500 homes under contract. Conclusion – still a seller’s market and good homes are selling quickly. All of our listings in 2021 have sold very quickly and most of them over original asking price. In fact, we are down to one unsold listing that is just coming to market. Here are some recent observations and charts from Mike Orr – Cromford Report: • 9/15: Rental investments are growing at a very high rate with sales of homes intended to be rented are up 97% from August 2021 vs. August 2020. •
iBuyer activity is off the charts. Annual changes of purchase from some of the largest buyers have grown by 1000% for August 2021 vs. August 2020 and August sales are as high as 370% higher comparing the same period of time.
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In August alone, iBuyer purchases were 1,145 homes, which represents roughly 12.5% of all home sales in August
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New home sale closings have fallen year over year. New home sales have suffered for a number of problems with
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There is more re-sale supply than there was 1 year ago in the high volume range from $400k to $800k. However supply below $400k is down sharply and supply over $1mm is lower than this time last year.
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At the end of August you can see in the chart below that the under contract price is still exceeding the closing prices (green line vs. red line) and the sales prices are greater than the list price when the home went under contract, but the gap is narrowing.
Some other observations past 30 days with properties we have bought, sold or leased: • Rental investment yields are rising. For rentals I own and also help clients purchase and lease rents are rising rapidly and investment homes are renting very quickly. For one home I own in Scottsdale rents rose in 1 year by 30%. The lease we secured a strong tenant within 2 days and had approximately 25 inquiries from other parties that wanted to lease it. Perhaps I could have secured higher rent, but made the decision to take a very qualified medical professional with outstanding credit. •
Our sales process and negotiations are benefiting our clients selling. As an example, on 8/31 we sold a Scottsdale home in 85254 over list price within the first week on market. We helped negotiate the sale $20,000 over asking price at $1,270,000 ($327 per Sq.Ft.). The same home sold one block away on August 25th at $1,150,000 ($293 per Sq.Ft.). I think our listing was nicer, but not by $120,000 and it went under contract only 1 week before our listing did.
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Since August 1st we have helped buyers and sellers negotiate over $6.25mm of sales and looking for many opportunities for buyer clients throughout the valley. Please remember to let us know if you have any needs coming up (purchase or sale) so we can work to navigate the market and get most efficient value provided to you.
On November 4th a charity I’m a member of (Neighbors Helping Neighbors) is hosting an event at CB Live in Desert Ridge with goal to raise over $150,000 to several charities we support with a hands on effort to support children, veterans and neighborhood service needs. If you haven’t already signed up to attend or donate please call me so can get you setup. It will be a fun party with buffet, live music and a live auction. Thank you for your continued support. Rebecca and I are working hard to make sure our clients goals are met efficiently. Very truly yours, Jon Mirmelli
HOMES RECENTLY SOLD
SEPT. 2021 08/22/21 – 09/19/21
ZIP CODE
# OF CLOSED LISTINGS
E GROU AT
JM
PRESENTED BY
Jon Mirmelli Real Estate Group AVERAGE SOLD PRICE
AVERAGE SALE/LIST PRICE
AL ES T RE
CLOSED
JON M MELLI IR
MARKET WATCH
P
AVERAGE $/SQFT
AVERAGE DOM
CAVE CREEK/CAREFREE 85331 63 $756,174 101% $298.91 39
SCOTTSDALE 85266 37 $1,259,509 100% $387.71 35 85262 52 $1,710,376 99% $398.83 82 85255 103 $1,223,113 99% $390.05 40 85254 96 $774,244 100% $369.72 34 85260 66 $773,675 100% $344.52 30 85259 56 $1,321,000 98% $368.35 46 85258 66 $750,253 99% $367.60 30 85250 46 $549,766 101% $340.13 30 85251 90 $604,982 100% $360.13 36 85257 49 $496,312 102% $319.33 32 FOUNTAIN HILLS 85268 86 $701,204 100% $299.23 37 PARADISE VALLEY 85253 29 $2,272,891 99% $526.28 69 PHOENIX/ARCADIA/BILTMORE 85028 38 $675,583 99% $319.34 30 85016 70 $631,485 99% $343.38 38 85018 76 $1,131,527 100% $418.15 42
ZIP CODE MAP
63
SCOTTSDALE
52
37
homes closed
homes closed
homes closed
103
homes closed
96
homes closed
66
homes closed
56
homes closed
66
38
homes closed
homes closed
54
homes closed
70
homes closed
86
homes closed
46
homes closed
76
homes closed
90
homes closed
49
homes closed
The properties on this list have been listed/sold by various members of the MLS. If your home is currently listed, this is not a solicitation for that listing. Data reported is based upon sales information provided by the MLS as of Sept. 20, 2021. Data deemed to be reliable but not guaranteed. Each office is independently owned and operated.
MARKET
WATCH
MIRM
LISTED
PRESENTED BY
Jon Mirmelli Real Estate Group
Jon Mirmelli Real Estate Group - Active, Pending, Closed
Need help selling your existing home or looking to buy? Please call Jon today! Referrals always appreciated.
ACTIVE
eautiful pool with view fencing and no neighbors behind the home! Nestled in the quiet community of Saddleview with easy access to top Scottsdale schools, minutes from Mayo clinic and easy access to Scottsdale restaurants/shopping with quick access to either Hwy 101 or Fountain Hills / Beeline Hwy.
SOLD OVER ASKING!
CLOSED
PENDING
Sonoma
6769 W Lone Cactus Drive Glendale, AZ 85308 4 Beds | 2 Baths | 4,2,178 SQFT | $535,000
Desert Ridge
Heritage East
6036 E Harvard Street Scottsdale, AZ 85257 3 Beds | 2 Baths | 1,836 SQFT | $649,000
22406 N 78TH Drive Peoria, AZ 85383 5 Beds | 3 Baths | 2,512 SQFT | $556,000
SOLD OVER ASKING!
CLOSED
Pinnacle Reserve East
If your home is currently listed, this is not a solicitation for that listing.
5242 E Anderson Drive Scottsdale, AZ 85254 5 Beds | 4 Baths | 3,878 SQFT | $1,270,000
P
JON M
JM
MELLI IR
Rebecca Ponte | 602.390.7096
SOLD OVER ASKING!
Arabian Crest
24634 N 76TH Place Scottsdale, AZ 85255 4 Beds | 3.5 Baths | 3,798 SQFT | $1,260,000
Jon Mirmelli Real Estate Group
SOLD OVER ASKING!
Fletcher Heights
3956 E Cat Balue Drive Phoenix, AZ 85050 3 Beds | 2.5 Baths | 1,654 SQFT | $480,000
CLOSED
CLOSED
CLOSED
E GROU AT
14290 E Cheryl Drive | Scottsdale, AZ 85259 4 Beds | 2 Baths | 2,350 SQFT | $1749,500
B
AL ES T RE
Saddleview
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