Homes are still getting scarcer relative to the number of people living here

By Angie Johnson
www.AngJohnson.com
(480) 570-5500

Sun Point Appraisals is a paid advertiser of ABC15

The Greater Phoenix housing market has been dominated by supply constraints for the last two years and it now looks as though this will continue for quite some time. The chronic shortage applies both to homes for purchase and homes for lease, though it is most severe for low priced homes i.e.under $200,000 for purchase.  The most fundamental of the many drivers of the housing market is the balance between our population growth and the net number of homes added to the housing market supply.

·        Recently released estimates from the Census Bureau show that between 2010 and 2012 the combined population of Arizona's Maricopa and Pinal Counties grew by 2.9% while the number of dwelling units (owned and leased) grew by only 1.0%.   The resulting imbalance is almost 3 to 1.  This has caused a major issue for Real Estate buyer's in the Arizona market. 

·        The total number of active ARMLS for-sale listings is almost half of what we would expect in a balanced market.  New home permits are being issued at about one third of normal levels as new home contractors are short on the amount of available labor to build the very needed, new homes. It is natural to assume that this abnormal situation will return to normal sometime over the next decade, but at the moment we are still on the down-swing when it comes to available inventory. 

·         In 2013, between January and May the average price per square foot in the Arizona Market has risen nearly 13% for single family homes. If you are waiting for prices to decrease prior to getting into the Arizona Real Estate Market, it's time to stop waiting and start taking action.  

Angie Johnson a Realtor with over 17 years of experience and her husband Paul who own Sun Point Appraisals, Inc., are expecting this upward pricing trend to resume full speed ahead once temperatures drop below 100 degrees and the snowbirds return.  To view current housing prices visit www.AngJohnson.com .  You can sign up for a free market report in your area that includes all sorts of valuable information.  

Anyone who needs to buy a home in Greater Phoenix would probably be best advised to do so during this lull rather than wait, since prices are likely to resume their strong upward climb.  Angie Johnson is available by phone regarding any questions on this article or the Arizona Real Estate Marke in general at (480) 570-5500 .

Sun Point Appraisals is a paid advertiser of ABC15

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