Amazing! 31% Price Increase in 2012 has ZERO Impact on Inventory!
In mid-January 2013, the total supply of single family homes listed for sale is 15% LESS than it was at the same time last year!
How the heck can prices go up 31% and supply fall 15%! According to economic theory, higher prices are supposed to make people more willing to sell their houses, not less.
It’s amazing that the number of new listings hitting the market in December 2012 was the lowest for any month since December 2001 when the real estate market was still reeling from the 9/11 attacks.
The real estate market usually has huge lag times between cause and effect, 1 to 2 years is not at all unusual. That means we may not see inventory increase in response to the higher prices until next fall or winter!
Phoenix Median Home Price to Increase Strongly Again in Spring 2013
I’m thinking this afternoon that the median home price in metro Phoenix could rise from its current $163,500 (December 2012), to $190,000 to $200,000 by June.
This doesn’t mean your personal home will increase that much, different zip codes appreciate differently.
Keep in mind, although your current home is appreciating rapidly, if you plan to sell your current home and buy another home, that the home you want to buy is appreciating rapidly as well.
NOTE: If you stumble upon this post in the future please keep in mind that even though the chart may be up-to-date that the text here was written in January 2013.