The month of December followed seasonal trends for this time of year with inventory hitting an all time low for 2021. While there are still buyers in the market competing for the available listings, most buyers who are able have paused their search until after the holidays. However, in many hot markets investors continue to purchase homes, keeping competition high for other buyers in the market.
December closes out an incredibly competitive year, with the real estate market favoring sellers across the country. Sellers have been able to choose from multiple offers, some even waiving all contingencies. But, the buyers who have been able to win new homes at low interest rates have likely already gained equity in their purchase.
All stats below are based on End of Month in November vs December:
Phoenix Housing Market
Supply and Demand: In December, there were 4.5 weeks worth of housing inventory available, a 25% decrease from the 6 weeks we saw in November.
Median days on the market – In December houses spent an average of 8 days on the market, the same number we saw in November.
New homes on the market – In December, there were 7,008 new homes on the market, an 18% decrease from the 8,571 new homes we saw in November.
Homes sold – In December 9,307 homes sold, a 4% increase from November’s 8,965 homes sold.
December proved another tough month for buyers in the Phoenix market. However, for sellers, home values increased by 32% total in 2021, providing drastic equity increases. The average Phoenix home is valued at $386,000. It’s likely Phoenix will continue to be highly competitive for buyers in 2022 as investors and iBuyers seek single family homes in the area. With that, bidding wars will continue and buyers will need to move quickly in order to compete.
Tucson Housing Market
Tucson home values increased for the 12th straight month in a row this December. The average Tucson home is valued at $294,400, a 28% increase overall in 2021. Similar to the Phoenix market, Tucson shows no signs of slowing down and has become increasingly popular with investors, homeowners purchasing a second home, and as a retirement destination.
Sellers throughout 2021 had a fantastic year. From record low interest rates to a year of dramatic home value increases. Sellers across the country have often had multiple offers to choose from, and hopeful buyers who have waived various contingencies. Inventory in December hit its lowest point all year, allowing sellers to get top dollar for their homes. Moving into 2022, sellers will likely continue to have the upper hand. However, interest rates may increase in upcoming months which could cause a slight shift in the real estate market as affordability changes. To ensure a quick sale for the desired price, it’s essential to work with a local real estate agent who is an expert in your market. With the help of a team like Trelora’s, you can sell your home with confidence.
Here are a few blogs that might help you as a seller:
- What Fixes are Mandatory in a Home Inspection?
- Finding the Right Relocation Specialist Realtor
- Selling a House for Cash: A Complete Guide
2021 proved to be a difficult year to be a home buyer and December followed this trend. Buyers have had to move very quickly to compete with other offers, including those from investors. 2022 will likely look similar to 2021, but buyers who are successful in winning a home will be rewarded in equity as home values continue to increase. While it can be challenging to beat out the competition in this continuously tight market, it is possible. With the help of an expert agent, who can advocate for you and navigate the local market, home buyers can secure their dream home with time.
Here are a few blogs that might help you as a buyer:
- What is a Contingent Sale?
- How Much Can You Negotiate on a House? 3 Things to Consider
- First Time Home Buyer: Start Here
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 with us, we give you comprehensive, expert service for only 1%. 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, Los Angeles, 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.