Phoenix Metro Area Market Update March 2022
It will come as no surprise that we are still seeing the average sales price and price per square foot rise at record rates. With inventory still historically low, there is no indication that prices will begin to level out or reverse anytime soon.
What is notable since last month, according to The Cromford Report, is that there are a reported 13% fewer owner-occupied purchased homes compared to last year. This number seems to make sense when considering that Cromford is also reporting a 24% increase in homes purchased for rental use and 20% increase in homes purchased as second homes or flips. These numbers support what most buyers and agents are experiencing – it continues to be a highly competitive market for traditional buyers.
On a national level, the conflict in Ukraine could have an effect on current interest rates. Historically, rates go down in the short-term, but later increase due to international sanctions, which can cause inflation. The National Association of REALTORS® is reporting a steady month-over-month decline in transactions nationally. The steady decline is due to the continued lack of supply.
Although there still seems to be quite a bit of uncertainty with rates and inventory, market experts still hold true to this not being a “bubble” or leading to an imminent crash. Mortgage rates are still very low, which is wonderful for buyers, and sellers remain in the real estate driver’s seat.
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