12970 E Cibola Road in Scottsdale, AZ. Click here to view the listing!
For over two years running, the Phoenix metropolitan area topped the charts for home price growth. With a national average of roughly 19% year-over-year growth, it’s no wonder that Phoenix has remained at the top for so long. However, according to recent statistics, this trend could change.
Phoenix’s 12-month growth of 33.1% in September dropped slightly to 32.3%, marking the start of a potential downward trend. ARMLS statistics showed that the drop continued in November, with a new median price growth of 30.3%. See below for more in-depth statistics on November home sales.
To summarize, there are several factors contributing to Phoenix’s overall growth and competitive housing market:
New Working Climates
With remote work situations becoming much more common, Americans are able to choose their homes more freely. Consequently, as Phoenix has been regarded one of the best fast-growing cities to live in, many families are turning to the Valley of the Sun for a place to call home. Paired with many Arizonans reaching prime homebuying age, we’ve seen a large influx of competition in the housing market.
Affordability
Another factor that makes the Phoenix metropolitan area so popular in recent years are the housing prices relative to other large cities in the US. With price bands of $372,000 and below for low-tier homes, we’re seeing many homebuyers from nearby states such as California.
Housing Shortages
Unfortunately, with the number of available homes not keeping up with demand of in and out-of-state buyers alike, we’re seeing a strain on housing prices that may take time to adjust. In addition, difficulties with construction and supply chain crises have made it more difficult for builders to complete housing projects.
If you’re thinking about making a move in 2022, I’m here for you! Whether you’re buying, selling, or investing, I’d love the opportunity to work with you. Please don’t hesitate to reach out at 480-355-8645 and let me know how I can help.
