By Peggie Simmons
Arizona Housing markets insights for Q4, 2021
But going into the last quarter of 2021, experts have predicted that the housing market is beginning to cool off this fall. So by their prediction, it is safe to assume that the home-buying frenzy could slow down. The prediction made by experts was a blanket projection for the entire nation.
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But does it stand in Arizona? 1. PRICE APPRECIATION Home prices in Arizona have skyrocketed in the last twelve months. According to Zillow, home prices in Phoenix and Scottsdale jumped by 30 percent, 29.5 percent in Mesa, and in Chandler and Tempe by 27 percent—with median home prices ranging from over $700,00 in Scottsdale to $360,000 in Phoenix. Experts say that though the price growth will slow, it will not stop. With more inventory getting into the market, competition in the housing market will slow, meaning the demand will not drive prices up. Price appreciation slowing down is nothing but good news for homebuyers. “We are seeing a little more inventory creep on the market, which means people have to get a little more realistic about their pricing,” said Jan Leighton, president, Arizona Association of Realtors, ABC 15 Arizona. 2. SUPPLY AND DEMAND Housing inventory is expected to come from several sources over this year and next year. First, the supply will come from existing homeowners and home builders. But, unfortunately, little inventory will be coming homeowners foreclosed upon after the expiration of critical federal l
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think the past two years have been very unpredictable. The market has been red hot for the most part, only showing some signs of cooling down this quarter, but how long will this be sustained? I don’t know. Maybe the market is taking a breather before shooting higher…. or perhaps it is correcting itself after months of unprecedented upward trajectory. But, one thing is certain; many markets have been primarily characterized by high demand and low inventory; Factors that have created the perfect storm for price appreciation.
