April 2022 Phoenix Metro Market Watch

By LINDSAY FRICKS

This month’s market stats are a feast for a data driven gal like myself! I literally salivate with excitement at the slightest sign of a shift in this market. There are three important updates I have to share this month so let’s get to it!

Lindsay Fricks Arizona Market Statistics

First, draw your attention to the top left number, Listings for Sale. Up 15.6% versus last month and 11.5% since last year, this the biggest year over year change in supply in many years. Supply going up impacts how fast home prices go up, the level of competition for available houses and how long it takes for a home to sell. The lower the supply, the faster prices go up and less time it takes to sell homes. When we see supply starting to rebound that’s a good indication that home appreciation will see some deceleration. This DOES NOT mean prices will go down which would only happen if supply were higher than demand. We are not even close to that environment yet.

Second, interest rates have gone up sharply and that’s putting some pressure on buyers and dampening demand just enough to allow the supply to rise. With the current high inflationary environment,the federal reserve is expected to press interest rates up significantly through the remainder of the year. Contrary to many beliefs, higher interest rates don’t typically impact a person’s decision to buy versus rent, but it does greatly impact the type of home and location they’re able to afford. Buyers are in a tough position given the 47% increase in prices over the last two years now compounded with rising interest rates. Your dollar will stretch less the higher interest rates go so if you’re considering buying, then it would benefit you to get to it sooner than later.

Third, I don’t typically share a lot about the rental market, but it’s an important factor that plays into the overall housing market. As you’ve probably noticed, it seems everyone and their brother has invested in a rental property in Arizona over the last two years. So much so that our rental inventory has increased significantly and is now pushing rental prices down. The peak in lease prices was back in August at $1.37 per square foot across all sizes and home types. Since then it’s been trending down to now $1.32 per square foot. Now, $0.05 maybe doesn’t sound like a meaningful amount, but if this continues to fall some investors may find they aren’t making the money they hoped and decide to sell. This is one of the channels that I think could bring the market back towards some semblance of normalcy. 

Lindsay Fricks Real Estate Arizona

Although we have a LONG way to go before demand and supply are in equilibrium, but at press time it’s starting to look like we are at the beginning of some cooling just in time for the summer heat! If this information triggers a question or you’d like to see a narrower view of this data please let us know by sending an email to [email protected]. We are happy to customize this data to show you what’s happening with your home or investments. 

Have a great month!

Lindsay Fricks Group- Lindsay, Jason & Savannah

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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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