OK, Phoenix Arizona metro home prices reached a record median $415K price in October 2021. However can a $517K price next year in 2022? Some experts think so, read on...
JIM CROSS of KTAR.com in Phoenix reported on October 18, 2021, "Home prices in metro Phoenix are still going up and real estate experts are projecting an average of $517,000 next year.
Online real estate marketplace Zillow says house hunters will face that half-million-plus hurdle by September 2022.
The company says the typical price of homes in the Valley reached $410,028 as of the end of September 2021. Last year at this time the number was $310,000.
Valley economist Jim Rounds says once interest rates start climbing, that will put additional strain on people trying to buy homes and still afford education, transportation, etc. “Even though interest rates are low, home prices are accelerating at a faster clip,” Rounds, who runs Rounds Consulting Group, told KTAR News 92.3 FM.....
“In the long run, everything balances out, but that’s going to take a while, which means people will struggle for the next couple of years at least.”
Rounds sees one positive.
“Those communities that continue to grow – add jobs, especially higher wage jobs – will get through this a little more smoothly.
“Greater Phoenix is one of those metros but that doesn’t mean that we don’t have an affordability problem.”
Separately, the Phoenix Arizona metro area home prices have surged to median prices that are 25% higher than this time last year. What is going on? See this information from Catherine Reagor on 10-10-21 article in the Arizona Republic
Phoenix Metro Median Home Prices Expected to Hit Record $415K in Oct 2021
Reagor reports, "The Valley’s median home price is expected to have hit $410,000 in September and climb to a new record of $415,000 by mid-October, according to the Arizona Regional Multiple Listing Service’s analysis of pending sales.
The price increases are coming even as the supply of homes for sale continued to tick up and sales dipped slightly in August. That combination of slowing indicators had been keeping the Phoenix-area median home price hovering around $405,000 during the summer.
An increase in the number of "iBuyers," corporate buyers and other investors purchasing Valley homes could be behind the latest price increases.
In August 2020, traditional buyers who typically plan to live in their homes accounted for 91% of metro Phoenix sales. But in August 2021, traditional buyers were behind only about 75% of Valley home sales.
IBuyers — companies using instant online buying methods, including OpenDoor and Offerpad — bought 150 Phoenix-area houses in August 2020, compared to almost 1,000 in August this year.
“We saw a significant increase in the number of properties purchased by iBuyers, large institutional investors as well as small investors,” housing analyst Tom Ruff with ARMLS’ Information Market group wrote in his latest report.
“Currently, they are on a buying spree, which begs the question, are institutional buyers and iBuyers the driving force behind our recent price gains?” Ruff said."
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