As we approach the heart of winter, the temperature may be dropping, but the real estate market is as hot as ever. Fall saw a decrease in inventory across most markets, as is standard for this time of year. As inventory decreases it’s no surprise the market remains competitive as serious buyers search for new homes.
Real estate across the country continues to see 10 to 15 showings per listing, showcasing just how much demand is outpacing supply. With that, as we approach year end, home values are up as much as 30% in some areas since this time last year. Many are wondering if the housing market will finally cool off in 2022, but as interest rates remain low, buyer competition will likely remain high.
All stats below are based on End of Month in October vs November:
Phoenix Housing Market
Supply and Demand: In November, there were 6 weeks worth of housing inventory available, the same amount we saw in October.
Median days on the market – In November houses spent an average of 8 days on the market, a 25% decrease from the 6 days we saw in October.
New homes on the market – In November, there were 8,571 new homes on the market, a 15% decrease from the 10,058 new homes we saw in October.
Homes sold – In November 8,965 homes sold, a slight decrease from October’s 8,803 homes sold.
The Phoenix area continues to be one of the most popular destinations for relocation within the US. Between investors purchasing rental property, and retirees looking for a second home or to downsize, competition is high in Phoenix. Average list price in this area was $550,000 in November, an increase of $12,000 since just October. Homes are typically selling for .5% over list price. But some listings in high demand neighborhoods facing bidding wars have sold for as much as 4% over list price.
Tucson Housing Market
Similar to Phoenix, home values are up in Tucson, having increased by 29.5% since November of 2020. Homes in this area sell for a median price of $291,000. Like Phoenix, Tucson is popular for relocation so it’s no surprise homes are selling for 100% of list price on average.
While we are still facing a strong sellers market across the country, trends are beginning to show signs of small changes. Inventory is down across most markets as is typical of this time of year, but bidding wars are seeing fewer competitors and homes are selling for list price, rather than 2-4% over list price. However, home values have increased dramatically in 2021, and will likely continue to increase through 2022. Sellers will continue to get top dollar for their homes when priced correctly. It remains essential to do your research when pricing your home to ensure you can sell in a timely manner and make purchasing your next home more attainable. Consult a local Trelora agent for a free home valuation and learn where to start if you’re considering selling your home, or just want to better understand what your options are in this market.
Here are a few blogs that might help you as a seller:
- What is a 1031 Exchange & How to Use It
- What Are iBuyers in Real Estate?
- How to Sell a House By Owner: A Complete Guide
Fall has brought with it cooler temperatures and some favorable trends for home buyers. While inventory has 2021 has seen a large jump in homes purchased with cash, especially in popular markets like Arizona. This indicates the increase in investors purchasing properties. For first time buyers trying to compete in an already tight market, this is an added challenge that can be overwhelming for many. With that, affordability concerns are growing amongst buyers as home values continue to increase across the country. However, low interest rates, a promising job market and increased savings can counteract this and help make home ownership more accessible. So, if buying a home is on your list of goals for 2022, consider reaching out to an expert agent in your area now to learn how you can avoid buyer burnout and find the right home for you and your budget.
Here are a few blogs that might help you as a buyer:
- How to Get Pre Approved to Buy a House
- Biden First TIme Home Buyer Tax Credit: How It Works
- How to Calculate Closing Costs
Please note, if you buy with us, we split our buyer’s agent commission with you and give you back up to $6,000, and if you sell And remember, sell with Trelora and get best in class customer service from a team of experts. Plus, if you sell with us, we give you comprehensive, expert service for a low flat fee. And keep in mind, especially if you’re moving or you have friends in other states, that Trelora can help you in Atlanta, Charleston, Charlotte, Denver, Phoenix, Raleigh, Sacramento Seattle and Tucson. In the meantime, please stay healthy and safe.
Brock Embree joined Trelora in 2017. In 2018, he was part of the founding team that opened Trelora’s Seattle, Washington office, their first expansion beyond Colorado. In 2020, he repeated the process, opening yet another new market for Trelora in Arizona. His team has closed over 200 deals in Phoenix and has expanded to serve Tucson in addition to their growing customer base in Phoenix.