What is going on with supply and demand as of July 0f 2021?
Is a crazy market and many people are feeling it.
Based on the housing behavior we are seeing on the market we can only project where the market could be going, but not necessarily predicting. Market can change in a week of you seeing this video, so let us make clear this information is as of the end of June of 2021. Click on the link provided on the description for your midyear real estate market analysis.
In a recent interview to NAR chief economist Dr. Lawrence Yun. COVID introduce many unique factors, and the economy is facing new circumstances the dollar value of goods produce is back up to 100% but not the job market we have 48 states with below job market
conditions compare to before the pre-pandemic the exceptions are Utah and Idaho who they never shut down. Their business was always open.
But the job market is not really back up and those that are working are working more than before. Inflation is popping high, the core inflation something the federal reserve watch very closely, is rising at the highest pace in 30 years!
People that currently renting will experience an increase on their rent depending on their market somewhere between 4-7% rent increase per year, now look at the homeowners they are in a monthly mortgage fix payment, now home prices continue to rise and is rising stronger now. Stay tune at the end of the video to hear what Dr. Yun has to say when he was asked are we in a bubble?
Anything between $300,000 and $400,000 started dropping in supply since the end of February we had 4,165 residential homes for sale in the Phoenix Metropolitan Area. By the end of June, we had close to 5,600 residential homes that is 34.1% Below the supply we had the same month in 2020, even though prices continue rising this is still good news as it has been a small increase of supply.
Residential homes between $400,000 and $500,000 have increase by 33.8% and at the end of February of 2021 we had 482 listed homes by the end of June we had 1,022. We are in hopes that those homeowners that went into forbearance and will not be able to pay the large payment at the end of forbearance, that will help increase the inventory in this price range as they will be able to sell and still put money in their pockets.
Now if we continue growing the supply at this rate in this price bracket, we could be at the supply we had in 2019 in about a month or two.
Residential homes between $500k and $600k in this price range the inventory has increase by 99% almost double since March of 2021 but we are still below 23.6% from the supply we had last year.
$660k to $800k is also rising in inventory by 96.6% since February of 2021 but still below 17.9% compared to last year inventory.
$800k to $1M has increase by 73.3% since February and below by 26.2% compared to last year by the end of June.
Homes are getting under contract in 6 days or less. I strongly recommend that even we are in a strong sellers’ market to not overprice your property as We are starting to see some price reductions on properties that are been overpriced. And is happening more on properties priced over $600,000. As of today, we are 74.5% below the inventory we had in 2019 this at this time of the year.
Now let’s hear Dr. Yun
If you are considering selling your home my professional advice is not wait for a long period thinking your home may increase in value 20-40% in the next 6 months. Act now that is still a strongest seller’s market we have experienced in the history of real estate. Click on the link for a detailed market analysis of your property no obligation and free.
Make sure you watch are we in a bubble? To see how things have change since I did that video back in February. Contact me with any of your real estate questions at 602-2128-9050 Thank you for watching God Bless you and I will see you the next time!