The number of single-family houses listed for sale in metro Phoenix is similar to 2004 which was right before house prices left Earth’s orbit in the first half of 2005. Oh yeah, and the population of metro Phoenix is about 33% higher today than in 2004.
For U.S. real estate market analysis,
go to Real Estate Decoded.
New Listings
Since August, new single-family listings have been running 5% to 20% higher than in 2019.
For Sale
But despite more houses hitting the market, the number of houses for sale is down 54% from the same week in 2019 because sales are so high.
Under Contract
No signs of cooling off.
Solds
No signs of cooling off.
Tell me in the “Comments” what you think.
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.
Note. This post was written on December 13, 2020 but the graphs will be continually updated.
4 Responses to Will Home Prices Reach Escape Velocity in 2021 Like in 2005?
I think we have a supply problem because for 8 years under obama very few sfr or condos were built so we have an 8 year backlog of homes that should have been built to accommodate normal growth but we have the added factor of those who delayed retiring here and those that are fleeing liberal states who are taking away freedoms that Americans cherish. Bottom line no end in sight for the supply shortage and it will get worse.
That may be your perception, but it isn’t reality. California is still growing. It is true that retirees flee California, but workers still flock there. This is hard data.
Arizona real estate will grow as long as people who are seeking employment find opportunity for employment here. It will not grow from more retirees, because the baby boom generation has largely already retired. Look for a sag in the rate of retiree migration to Arizona as the supply of the baby boom generation dwindles.
Retirees are coming to Arizona from all over the country, not just from California. Look at all the car licenses as evidence (Wisconsin, Michigan, Colorado, Minnesota even Canada to name a few). Most retirees are looking for warmer climates. As those potential retirees watch the golf tournament this weekend and see 76 degree weather here in Phoenix, they’ll be wishing they were already here.
There’s an economist out of Australia that says the same exact thing about new home builders. It would be irrational for them to build enough houses to lower prices.
https://www.fresheconomicthinking.com/
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