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Arizona Housing market Insights for Q4 2021, by Peggie Simons.
By Peggie Simmons
Arizona Housing markets insights for Q4, 2021
Ithink 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.
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.
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
3. MORTGAGE RATES
2020 saw mortgage rates drop to historical lows of a little over 2 percent—a 50-year low. Mortgage rates for the better part of 2021 have remained low, averaging at 3 percent. Experts advise that mortgage rates for the remainder of the year will remain grounded for the remainder of the year.
However, mortgage rates are bound to change heading to 2022, but as these rates vary daily and from one service provider to another, it would be a great idea to compare mortgage rates offered by different providers.
4. HOME VALUES
In the last quarter, property values in Phoenix, Mesa, Scottsdale metro grew by over 31.9 percent from August 2020 to August 2021. In Phoenix alone, that translated to nearly $400,00, up 3.4 percent monthover-month and 29.8 percent year-over-year.
Home values will be increasing for the rest of the year and into 2022.
5. RENTAL MARKET
In Metro-phoenix, the housing shortage is forcing tenants in some cases to pay hundreds of dollars in application fees to find a place to rent. These fees are not inclusive of move-in costs such as security deposits.
It is no wonder that Arizona has the 21st highest rent in the country out of the 56 states. Rent, as with home prices, is expected to continue to rise through to 2022.
The Arizona housing market is stable going into the fourth quarter of the year. Inventory has somewhat gone up, but with more active listings set to increase through 2022 from both existing and new construction, price appreciation is expected to slow. The price growth might slow but will not stop as experts say that price appreciation in Arizona will grow into 2022. Thanks to the supply and demand dynamics in Arizona, home values are also on the rise. But with competition easing up, buyers are breathing a sigh of relief as homes are now reasonably priced. And should you be in the market to either sell or buy your home, head on to www.thepowerisnow.com and get connected to our experienced real estate agents? If in Arizona, contact Peggie Simmons.
ABOUT PEGGIE SIMMONS
Peggie Simmons has 34 years of experience as a real estate agent and Broker in Tampa, Arizona, and currently serves as the Founder and CEO of Realty Marketing Group, specializing in relocation, new homes sales, traditional homes, marketing & sales, short sale negotiations, foreclosures, luxury rentals, investments among many others. Mrs. Simmons’s hard work, charisma, and genuine passion for her business have helped boost her reputation as a qualified realtor. Mrs. Simmon’s area of interest is real estate, whether it be navigating the way for your first home, or even trying to score a perfect distressed property, or providing help in the luxury market, Peggie knows and has had a taste in it all. Therefore, if you are looking to buy or sell in the Tampa and Arizona region, Peggie Simmons’s expertise and charisma in the field will be your perfect match.
However, if you are looking for a real estate agent in the Riverside area, talk to Eric Lawrence Frazier, MBA, at 800-261-1634 ext. 703. He is not only an excellent real estate agent but a fantastic mortgage broker that can get you preapproved quickly.
About the Power Is Now Media
The Power Is Now Media is an online multimedia company founded in 2009 by Eric L. Frazier, MBA, headquartered in Riverside, California. We advocate for homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. The Power Is Now Media corporate office is located at 3739 6th Street Riverside, CA 92501. Ph.: 800-401-8994 Website: www. thepowerisnow.com.
Eric Lawrence Frazier, MBA. President and Founder, The Power Is Now Media
Works Cited:
https://www.noradarealestate.com/blog/phoenix-real-estate-market/ https://azbigmedia.com/real-estate/residential-real-estate/5-arizonahousing-market-predictions-for-2021/ https://www.abc15.com/news/let-joe-know/housing-market-cooldown-onthe-horizon-for-arizona http://www.homebuyinginstitute.com/news/phoenix-market-buyerfriendly-in-2022/#:~:text=A%20recent%20forecast%20for%20the%20 Phoenix%2DMesa%2DScottsdale%20metro%20area,past%2012%20 months%20or%20so.
WOULD KEEP US FROM OUR NEW HOME.”
“ As our family continued to grow, we started looking for a new home. The landlord told us he wasn’t comfortable renting to people with children because they might go to school or daycare and bring home COVID-19.” COVID-19 inequity is real, and it shouldn’t be made worse because of housing discrimination. If you suspect housing discrimination because of your familial status, fi le a complaint with HUD or your local fair housing center so we can investigate it.
Go to hud.gov/fairhousing or call 1-800-669-9777 Federal Relay Service 1-800-877-8339
FAIR HOUSING: THE LAW IS ON YOUR SIDE.
A public service message from the U.S. Department of Housing and Urban Development in cooperation with the National Fair Housing Alliance. The federal Fair Housing Act prohibits discrimination because of race, color, religion, national origin, sex, familial status or disability.
