Well folks, it’s been a hot one… not just our temps, but our Summer Real Estate Market! We took a little break from our market videos to concentrate on our clients and were also lucky enough to spend a few days away with our families in cooler climates.
A Market Correction
You may have heard about a summer real estate market correction happening. Although we’ve gained inventory – an 89% increase from March 2021 to July 2021 – it hasn’t had a negative effect for sellers at all. This increase was welcome and needed, and has given buyers more options, while keeping North Central Phoenix home prices and the occurrence of multiple offers about the same.
Our Housing Shortage
So, what brought on this housing shortage in the first place? It actually isn’t all California’s fault! According to a recent study by the National Association of Realtors called ‘Housing is Critical Infrastructure’, the US has underbuilt housing for the past 20 years. There are simply not enough new homes being built to impact the inventory shortages that were a long time coming. However, we do expect to see a continued but slow inventory rise throughout the remainder of 2021.
Phoenix Home Prices
Your next question may be about how the new inventory is affecting home prices. In North Central Phoenix, prices have jumped $50 per square foot over the past few months. All stats show pricing will continue to rise but at a much slower pace.
The Bottom Line
We’re in a healthy market, and don’t see that changing any time soon! Please take a few minutes to check out Steve and Erik’s market update video to get more information about oour current Phoenix market. And if you’re thinking about buying, selling, or just want to know more about the market in your neighborhood, don’t hesitate to contact us at 602-903-7220.