Greater Phoenix Real Estate Market Update 4/29/2022

The market is indeed softening, locally no doubt, nationally – it is just becoming visible. The AZ market had a four-week head start. The pressure on affordability hit nationally last week when we saw purchase mortgage applications decline by 17% year over year. 2014 was the last year total housing inventory increased (this is true both locally and nationally). Currently, inventory is up 19% in a month.

Greater Phoenix Real Estate Market Update 4/1/2022

After reading my update from last week, a friend and client said she was confused. While the market is softening, as discussed, her listings are still selling immediately, above asking, and with multiple offers. That is just it. These things are all still happening. Houses are actually selling faster than they were last year. TheContinue reading “Greater Phoenix Real Estate Market Update 4/1/2022”

Greater Phoenix Real Estate Update 3/25/2022

The newness of the market frenzy has worn off. Buyers are exhausted and sellers hesitate to list, unsure where they will go. While we know that this market will not last forever, no market ever does, we do not need to wait for the other shoe to drop. Real estate moves slowly and as long as we watch it closely and carefully, we should have a general idea of what to expect.

Greater Phoenix Real Estate Update 3/18/2022

Demand is stable. Do not let the headlines fool you, demand is not crazy high right now, it is stable. It seems that demand is so high because of the extremely low inventory. Remind sellers on the fence that it will not last forever. Demand may further weaken, or inventory could rise; both of which limit the strength of the seller’s market.

Greater Phoenix Real Estate Update 3/4/2022

In Greater Phoenix, demand has been declining slowly since early January when demand was 23% above normal. Yesterday’s demand was about 15% above normal. Because inventory is 75% below normal (about 4,000 available single family homes in Greater Phoenix), the decline in demand is nearly unnoticeable. Listings may now only receive 10 offers instead of 20. Despite the decline in demand those remaining buyers still want to buy that property which usually only goes to the highest bidder.

Greater Phoenix Real Estate Update 2/25/2022

At 7.5%, inflation is at its highest rate in 40 years, the sanctions against Russia will lead to more inflation, combined with rising interest rates, rising (home) prices, low inventory, and solid demand; today’s home buyers face a lot of hurdles. We remind the buyers that real estate ownership is the number one wealth creator.Continue reading “Greater Phoenix Real Estate Update 2/25/2022”

Greater Phoenix Real Estate Update 2/18/2022

Prices are increasing slightly faster than they were at the end of 2021 but not as quickly as they were in the first half of 2021. Currently prices are increasing at a 1.8% month over month, up from 1.6% just last month. We may see this go up but unlikely to go up to the 4-5% we saw last year. Definitely be faster than 1.1% from last year.

Greater Phoenix Real Estate Update 2/4/2022

Inventory is still declining, demand remains consistent, and prices are still increasing. There is no relief in sight. The anticipated January inventory increase never materialized. The expected foreclosure boom didn’t come. The builders are constrained as ever. Mortgage rates are up. Something has to give, but what and when? Our buyers are exhausted and potential sellers don’t know where they will go when they sell.

Greater Phoenix Real Estate Update 1/14/2022

After nearly two years of headlines and non-experts forecasting a crash, a recent headline reads, “Housing costs will be ‘permanently higher’ following pandemic: Study” I expect to see more headlines like this and hopefully, they will reduce the, “I’ll wait until prices go back down” comments. Waiting has proven to be incredibly expensive. In 2021 alone, Greater Phoenix saw a 28% appreciation rate, and the entire country increased by about 15%. Emotionally, the 2005 market felt a lot like the 2021 market, but the fundamentals of those markets were entirely different. Simply put the 2005 market was based on tremendous demand while the 2021 market was based on nearly non-existent supply.

Greater Phoenix Real Estate Update 1/7/2022

“Buy land, they’re not making it anymore.” ~Mark Twain On June 19, 2020 I wrote, “Econ 101 taught us about supply and demand. To measure the health of the real estate market we look at new listings AKA supply, and new pendings AKA demand. When demand out paces supply, prices go up. This has beenContinue reading “Greater Phoenix Real Estate Update 1/7/2022”