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Arizona Real Estate Market Update for February 2022

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Thank you for reading my blog on the Arizona market, there Is a lot of information here, and I’ve broken it down into 1. Supply, 2. Rents, 3. Population, and 4. Appreciation (Cromford Market index). In short, we have a critically low supply, 269 people moving here per day, we have building setbacks, there are multiple offers on over 40% of the listings, prices are expected to rise in 2022, interest rate hikes will most likely hit in 2022, and much more.


Here are some stats for The Phoenix Metro area for February 2022:

Median Days on the market to contract = eight days

Annual appreciation 27% Year over year.

Sales over asking price 42%

4760 Active listings (We Need 16,000-18,000 to be in a stable market)

DOM 8 days until contract

Cromford Market index is at 460. When this number reaches below 100, only then will the price turn.

New supply mainly comes from the construction as of now.


Supply

We need more listings for buyers.
At the time of this chart, there are only 4760 Active listings. We Need 16,000-18,000 to be in a stable market.
Builders are trying but not hard enough.

Renting and Rent Rates

Pray for us 🙏

Population


Cromford Market Index and Appreciation of the past and what to expect for 2022. The cromford Market index is a predictor of price and apprciation.

We are very high on the scale at over 450. For that number to come below 100 (The point at which prices will start to reverse) is a long time away. Conservatively speaking, prices will continue to increase through most of 2022 and possibly longer.
Expect prices to rise the most in the top 10 cities.

What this means for you:

Buyers:

  • Affordability has been slowly waining and buying a house compared to renting is still the better decision over time but monthly payments are getting closer when compared.
  • Multiple offers, waiving appraisals, limiting inspections, and frustration still prevail and expected to decrease with time in 2022.
  • Interest rates are expected to rise in 2022, so buying sooner than later can save you money.
  • For some it may feel like a housing crisis, it is difficult to provide shelter for your family right now.
  • Prices are still expected to rise in the next 6 months so you can expect appreciation when you buy.

Personally, it’s been very challenging helping families get a roof over their heads if funds are limited. If you look through my market updates in my blog, you’ll see that I’ve been screaming to stop waiting for the market to crash, it hasn’t, and there is no sign. I will tell you what the Cromford market says; they and I are transparent; we want to give you the data to be able to make choices. Please call me; I’m very in tune with what is going on.

Sellers:

  • This is probably one of the most historic times to sell with prices peaking from covid and being able to sell their home fast, with doing little repairs, receiving over appraised values, and being allowed to live in their homes post possession.
  • The biggest hurdle for sellers is getting into another home smoothly. There are compainies like www.homeward.com who will allow you to buy a home with cash, while remaining in your home, than sell your home once you move. We also demand post possession when selling your home, if the buyer doesn’t give us post possession, than we don’t sell to them.
  • More options than ever now to sell, let me go over your options and see how we can get the most money in your pocket.
  • To take advantage of the market you could possibily sell a rental unit or a secondary home. Your house will be worth more in six months, you could wait but all of 2022 will most likley be a good time to sell.

Regards,

Jay Bru

480-466-4917

jay@jaybrugroup.com

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