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Phoenix Market Update September 2021

By LINDSAY FRICKS

Last month I cautioned about reading too much into the headlines around the real estate market cooling off. The latest numbers are out and confirm my advice. Although supply has increased since May, active listings have now flattened out month over month. That means there are the same amount of listings available today as there were at the same time last month. The brief increase in active listings brought some temporary relief to the competitive buyer market, but we are stabilizing at significantly under the number of homes needed to satiate buyer demand. In this environment buyers and sellers can expect for home prices to continue to rise throughout the valley.

Phoenix Market Update September 2021

On a national level, through Q2 of 2021, Phoenix is still leading the pack with the highest level of year over year appreciation than any other major metropolitan. Phoenix has held the top spot for a record 25 months in a row. Yowza! This is the highest appreciation increase ever seen in the history of residential real estate. Reports are suggesting that although the number of sales slowed slightly through the summer months, experts are still expecting double digit increases in house prices again over the next 12 months.

  1. Phoenix +29.3%
  2. San Diego +27.1%
  3. Seattle +25.0%
  4. San Francisco +21.9%
  5. Tampa +21.5%
  6. Dallas +21.3%
  7. Miami +20.1%
  8. Las Vegas +19.8%
  9. Denver +19.6%
  10. Portland +19.2%
Phoenix Market Update September 2021

The big question is, how long will this environment last? I don’t have a crystal ball, but it looks like we will still be in this low inventory and high demand situation for a while. Affordability has already started to become an issue with some would-be buyers opting to continue renting because they can no longer afford to purchase a home that suits their needs. Any upward pressure on interest rates would have a significant negative impact on affordability so that’s something to keep an eye on.

For the time being, sellers have the upper hand, but not nearly to the levels we saw earlier this Spring. There are significantly more price reductions, less offers per home and fewer buyers willing to pay over list price to secure a home. If you find yourself wondering how this impacts your specific real estate situation please reach out to schedule a one on one strategy meeting with yours truly.

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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