Published June 26, 2023
Prices are up 7% This Year
Prices are up 7% This Year
John A Sposato
So, this week we are watching Supply and Demand at work here in the Phoenix Metro MLS.
Inventory is still dropping week over week...at the same time, week over week Pending are increasing...So the combination of buyers writing more offers and less homes available on the market has led to an increase in Median Sale Price.
Economics 101.
This graphic is showing you the increase in Median Sale Price since 2020.
The median home price reached a peak in pricing in May 2022 @ $480,000.
When the Interest rates jumped at a historic rate last Summer and Inventory spiked, prices dropped the second half of last year to a low of $415,000 in January 2023. That was a 11.5% Decrease in Home prices.
TODAY, pricing has Increased 7% since January, bringing the Median Home price to $443,000.
Now remember, ALL of this has happened while the Federal Reserve has increased interest rates over the last 6 weeks!
If you have any question as to where pricing will be going in the next year, I think the past 6 months has been a good indicator..and the answer is upward. Despite higher Interest rates and despite less homes to choose from, buyers are buying....and prices are still going up.
What's going to happen when the Federal Reserve starts to lower rates as anticipated towards the second half of the year?!?
Demand will shoot up, and pricing will follow.
