8255 E Overlook Drive in Scottsdale, AZ. Click here to view the listing!
Many observing the real estate market in recent years noticed an imbalance between the supply and demand of Arizona homes. This climate was the result of multiple factors, such as the influx of new jobs and the rising popularity of real estate investment.
During this time, population grew by nearly 8% as inventory struggled to keep pace. However, this will not be the new normal and data is showing the gap between supply and demand beginning to decrease.
Let’s take a closer look at some notable market observations from the National Association of Realtors this year:
- The median price point for homes increased by about $65,000 since January, but has slowed since June
- In the second quarter, 50 houses sold for at least $500,000 more than their listing price
- The luxury market boomed, with 471 home sales exceeding their listing price by over $1M in June
- Chandler became Arizona’s fastest growing city, entering Realtor.com’s Top 50 Hottest Zip Codes in America
Impact on Construction
Events of recent years have had an impact on new construction, hampering efforts to create new housing units. Here are a few ways that construction has been affected:
- The construction of single-family homes has reached a new high of nearly 700,000, with numbers unseen since 2007
- Inventory of new homes is up by about 5.5%
- Lumbers prices have fallen since its peak, dropping roughly a third of the price since May
Although this is mostly good news, month over month builder confidence has steadily dropped, with numbers exceeding a new low since July 2020. This decline could be attributed to both labor shortages and a spike in some material costs.
I hope that you’ve enjoyed this snapshot of the current market! And, as always, I’m here for you if you have any other questions. Feel free to reach out to me at 480-355-8645 for any of your homebuying or selling needs. And, together, we can find the right home for you and your family!