Hot Hot Hot! is a phrase often used to describe the Sunny Phoenix Arizona metro area but that is not what I am referring to. I mean Home Prices and Home Sales and demand is RED HOT in the Phoenix metro!
My last 3 contracts representing buyers in the highly in demand less than $400K homes price were all up against 20 to 35 other contracts from other buyers that we had to deal with. Buyers with cash, best price (usually above list price), fastest move in are getting many of these properties which means that families with a mortgage loan are being frustrated. Median Phoenix metro house prices rose to a record high at year end 2021 of $427,000 per the Arizona Regional MLS.
HOT! Rising to a Record December 2021 Median House Prices of $427,000
$427,000 December 2021
$333,000 December 2020
$290,000 December 2019
Per Catherine Reagor of the Arizona Republic, January 25, 2022, "Metro Phoenix homebuyers won’t get a reprieve from rising prices anytime soon as competition for houses heats up again.
The Valley’s housing market isn’t expected to be as frenzied as it was in 2021, but prices are on track to keep steadily climbing until probably May, according to real estate analysts.
The median home price in the Phoenix area hit a record $427,000 in December 2021, up 28% for the year, according to the Arizona Regional Multiple Listing Service. That number is expected to climb to $430,000 in January, based on pending sales.
Further Reagor wrote, “Normally, at this time of year we have around 16,000 houses listed for sale in metro Phoenix,”per Tina Tamboer, senior housing analyst with the Cromford Report. Now we have half that amount listed for sale.
"She said it’s still a very strong seller market...Tamboer said prices could climb 1% or more a month this year...So-called "iBuyers" and corporate investors are snatching up a growing share of Phoenix-area homes, outbidding many first-time buyers and pushing up prices."
Further, "iBuyers flip homes, but most corporate investors turn them into rentals.
Rents in metro Phoenix are soaring, and investors are snatching up both houses and apartments.
The average rent on a Phoenix-area home or condo climbed almost 20% last year to hit $2,035, according to national research firm CoreLogic. That increase is second only to Miami in the U.S.".......“The market isn’t going to get better for buyers anytime soon,” Tamboer said.
Mortgage rates are also on the rise, but still closer to record lows so this may be a time for buyers to buy in 2022 before both home prices and mortgage rates rise any more.
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