![]() One way to help ease the supply issue is to simply build more housing to meet the demand. With the new year, will the market continue an upward trend in home prices, or is it due for a correction - perhaps even a crash? Fire in the auditorium? “Historically, 40% fewer homes hit the market in December than in January, which is typically our top month for new listings,” he says. Halpern adds that the end of the year is typically leaner, as folks focus on the holidays instead of moving. ![]() In mid-November, it was around 345, so it has gone from a crazy, hair-on-fire market to just a frenzied one,” La Rue notes. “Last April, we were basically at 500 on the Cromford Report, which is definitely a seller’s market with far more buyers than there were homes available to purchase. When supply and demand is perfectly balanced, the Cromford Report assigns a score of 100. He cites the Cromford Report, which rates the industry based on current conditions. Rich La Rue, a broker with HomeSmart, says that the Greater Phoenix area is still in a severely unbalanced market. “Two years ago, we had 14,000, and this time last year we had 8,700. “If we look at homes that are not under contract or pending, we have about 7,700 properties available today,” Halpern notes. ![]() Trevor Halpern, founder of Halpern Residential at North&Co, says that even after a slight boost in inventory from its lowest point, the number of available houses is still historically low for the region. and the founder of the Halpern Residential real estate group. 1 independent agent at Phoenix-based North&Co. Census Bureau reporting that the City of Phoenix added 163,000 residents over the last decade - all of whom need a place to live. The Valley continues to be an attractive option for businesses and individuals, with the U.S. When demand is high and supply is low, prices rise in response. Imagine the price of anything going up by 30% in one year,” Hensley says.Īs with any product, housing follows the law of supply and demand. “In terms of annual appreciation for homes, 30% is an outrageous number. READ ALSO: The 3 hottest neighborhoods in Arizona Steven Hensley, senior manager at Zonda, a housing market analysis platform, notes that the strained supply chain created material constraints that caused major sticker shock for would-be buyers of new homes. Can this continue, or is there a potential housing market crash on the way in 2022?Įfforts to boost the housing supply through new construction also faltered as the industry experienced acute shortages. Houses listed for sale saw fierce bidding wars with buyers willing to contort themselves to meet sellers’ demands, which include such concessions as renting the home back to the sellers for a period while they found a new house to purchase. Median sale prices rose in Phoenix from $325,000 in January 2021 to $404,300 by October, a 24.4% increase, according to real estate website Redfin. Last year was anything but normal - especially in Arizona’s residential real estate market.
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