Prices and Supply
Demand is strong but what’s really launching house prices is the very low number of houses hitting the market.
Right now, it looks very likely that price increases in metro Phoenix will be LARGER in 2021 than in 2020. Single-family house prices were up 19% in 2020.
Prices and Interest Rates
The entire fall in interest rates has now been eaten up by higher house prices and price increases aren’t slowing down.
Interest rates fell from 3.62% to 2.74% (30-year fixed-rate) but the median single-family house price rose 19% from January 2020 to January 2021.
The increase in prices more than offset the decline in interest rates. Taking both house prices and mortgage rates into account, the typical mortgage payment was up 6% this January compared to last.
See last week’s column for more details.
Let me know what you think in the comments.
Click on the graph to open the full-size, interactive version.
Houses Just Listed For Sale
A lot FEWER houses were hitting the market in January compared to 2020. (FYI, The latest week is always revised up ~25%-30%.)
Prices are up 19% but fewer listings are hitting the market. Economically, houses are NOT like other products.
Houses For Sale
Down 63% from last year at this time.
Houses Under Contract
Approaching last year’s level. Part of it is probably because the title and mortgage industries got caught up a bit when business “slowed down” during the holidays.
Down a little bit. (FYI, The latest week is always revised up ~5%.)
This information can vary a lot in different parts of metro Phoenix. Your real estate agent can find the data for your specific city or zip code at The Cromford Report.
- Phoenix Weekly Market Updates 2020
- Phoenix Weekly Market Graph (only)
- Long-term Phoenix real estate market graphs
2 Responses to The B-Word – House Prices Up 19% in 2020 – Likely Higher in 2021!
I always appreciate your updates! I have a question for you. Do you think this applies to Flagstaff/Northern AZ as well?
Laura, I assume it applies to Flagstaff/Northern AZ as well but I haven’t seen the data.
Okay, did a bit of research and found this on Zillow. https://public.tableau.com/shared/M6SNZQKXW?:toolbar=n&:display_count=n&:origin=viz_share_link&:embed=y
Looks like Flag is taking off too.
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