Huge gains in the Phoenix real estate market this year.
Monthly median sales price for the first week of the year was $118,700. And in the 20th week of the year, just four short months later, the median sales price is $142,500.
That’s a 20% increase! In four months.
If you look at the point where the pricing surge began, which was the last week of February (Week 8), and compute the increase over the next 12 weeks, you’ll see that the rate of appreciation is 18.75%. Then, multiplying that rate by 4, to get a projected annualized rate, you get a fantastic, and unsustainable increase of 75%.
Yesterday, the Cromford Report shared the following perspective:
Prices very rarely go up at this phenomenal rate for an extended period of time. They need an occasional rest to let the rest of the world (especially appraisers) catch up. However, supply has not improved, so the upward pressure building under prices is still strong.
However, cash purchases continue to play a strong role in the current rate of appreciation, with about 40% of all homes being purchased with cash.
And, the number of homes on market continues to dwindle, especially when compared to the number of homes being sold.
Buyers are scrambling. Equity owner are considering selling. Offers before the home is listed, and multiple offers are the order of the day.
One thing about Phoenix real estate, it’s always changing. And, it’s never boring!
More on the current state of the Phoenix real estate market: