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March 2022 Phoenix Metro Market Watch

By LINDSAY FRICKS

Consumer skepticism of a looming “housing bubble” and how high prices can soar in the Phoenix metro continue to dominate headlines. However, the housing market data is showing no signs of deceleration as week after week in 2022 we have seen prices accelerate. In the last week of February the overall monthly average home sale price grew 2%, or $11,246, in just 7 days. Does this sound like cooling off to you?

Lindsay Fricks Arizona Market Statistics

Long term under development of residential home building over the last 15 years paired with a significant increase in population has caused a large imbalance in the supply of homes available versus the amount of people ready and willing to purchase a home. Affordability decreasing as interest rates increase has caused a minimal amount of demand to drop off. Demand would need to plummet significantly in order for the dismal supply to satiate needs across the valley. Under these circumstances, the most trusted sources are predicting housing prices to continue up for the foreseeable future.

If you’re a buyer, specifically a buyer who needs to leverage financing to purchase a home, you need to prepare yourself mentally and emotionally. There are A LOT of aggressive cash buyers in the market right now… significantly more than I’ve seen over the last 3 years and they are beating out very aggressive financing offers regularly. In order to make your financed offer look as much like a cash offer as possible you will most likely need to prepare for a quick close (21 days or less if your lender can do it), waive the appraisal and repair conditions and even make your earnest deposit non refundable. I am seeing people waive the inspection period altogether but I still advise against buying a home in most cases unless it’s professionally inspected. There’s still money to be made if you can secure a house, but be prepared that it’s going to be a fight to get one of the 4,862 homes currently active for sale.

If you’re considering selling, you’ll likely get a record price for your home, but the speed of this market will also impact you. Moving really isn’t realistic for all people right now because the days of selling one home and buying another one simultaneously are gone at least for the time being. Even though it’s more challenging to sell and buy, it’s not impossible and here are some potential scenarios to consider if it makes sense to sell your home right now:

  • You have an investment property you don’t currently need/want
  • You have cash available to buy a primary or secondary home without selling
  • You can afford and qualify for financing to buy a new home without selling your existing home
  • You are moving out of state or to another more affordable geography within the valley
  • You are comfortable selling your home with a temporary leaseback option while you find a new home
  • You are okay with utilizing temporary housing if necessary between selling and buying homes
  • You are okay paying a little more for creative financing that will help you bridge the gap between homes without having to move into temporary housing

If any of these sound like you, then we should probably chat about how selling could look for you. Buying or selling in this market requires a high level of skill, tenacity and partnership. We love rolling our sleeves up to make a game plan to help our clients achieve their goals. Let’s schedule your real estate strategy session ASAP.

Lindsay Fricks, Helping you, your family and friends Live & Love in Arizona!

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Median Home Price

$325,000

Annual Appreciation Rate

+7%

Estimated Population

450k

Median Age

34

East
Valley

why you want to live here

The two largest and most popular cities in the East Valley are Gilbert and Chandler. Once known for agriculture, the area has now been transformed into some of the most well known suburbs. Both cities have experienced tremendous growth in population and along with it now has all the amenities of larger cities. The suburbs are highly focused around families and have lots of parks, recreation and many family events year-round.

Median Home Price

$261,096

Annual Appreciation Rate

+8%

Estimated Population

1.6M

Median Age

33

Central
Phoenix

why you want to live here

Phoenix is the heart of The Valley of the Sun and capital of Arizona. Known for warm temperatures year-round and sprawling urban space surrounded by desert mountains. Phoenix is the 6th largest city in the US and home to nearly 1.6 million people. Phoenix has just about something to offer everyone: numerous golf course, professional sports teams, hiking trails, concerts, festivals and much more. With an affordable cost of living there’s a place for everyone with the Phoenix metro.

Median Home Price

$308,750

Annual Appreciation Rate

+8%

Estimated Population

174k

Median Age

28.5

Tempe

why you want to live here

Tempe is a city just east of Phoenix, in Arizona. Its striking Tempe Center for the Arts hosts concerts, dance and comedy shows. Nearby, Tempe Town Lake is dotted with kayaks, pedal boats and paddleboards. Tempe Beach Park hosts outdoor festivals. Rising above the city, Hayden Butte is a mountain dotted with centuries-old rock art. Sporting events and concerts are held at Wells Fargo Arena.

Median Home Price

$725,000

Annual Appreciation Rate

8%

Estimated Population

36,241

Median Age

39

Scottsdale

why you want to live here

Scottsdale has long had a reputation as one of the most affluent cities in the West most well known for high end golf, spas, resorts, restaurants and shopping. There are over 27 golf courses located within the Scottsdale boundaries. The Southern part of Scottsdale is home to the historic Old Town area. The southwestern charm, numerous restaurants, bars and shopping as well as exciting nightlight make Old Town a hot spot for both young and old. Central Scottsdale is home to many popular golf communities such as McCormick Ranch, Gainey Ranch and Kierland Commons.  North Scottsdale is home to to two of the valleys largest annual events: the Barrett Jackson Auto Auction and the Waste Management Open PGA tournament. These events along with the 5 professional baseball spring training facilities bring millions of visitors into the area throughout the Spring months.

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