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.

Houses Sold

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.