Community Property Type Price Min Price Max Beds Baths

Phoenix Housing Market Tightens Up

For buyers looking for properties in the Phoenix area, it might seem like the market has changed overnight.  Media reports have been pumping that “it’s a buyer’s market!” for (literally) years.  Indeed, for years that has been true.

However, a look at historical numbers shows that the Phoenix real estate market has been improving for years by at least two measures: new listings and number of units sold.

 

New Listings

A look at new listings shows that, with the exception of a slight increase from 2009 to 2010, the number of new listings per year has been declining since 2007.   In fact, the annual total of new listings in the Phoenix area was lower than the height of the market in 2005 (in terms of median and average prices).

Historical Greater Phoenix Home Listings 2001-2012

The chart above represents the supply side of the equation.  Now let’s look at demand.

 

Unit Sales

You can see below that 104,725 homes were sold in 2005, then the number of units sold plummeted to much lower levels for the next 5 years.  In 2011, the number of homes sold in Greater Phoenix was almost on par with the frenzied year 2005.  And 2012 is off to a robust start!

Historical Greater Phoenix Home Sales 2001-2012

 

I’ll cover price changes in an upcoming post but, thanks to Economics 101, we can reliably predict that a drop in supply (# of listings) and an increase in demand (units sold) should lead to a corresponding increase in prices.

To be continued…

 

Return to Blog

Share

Leave a Comment

Tell us what you think about this post and if you want to show a picture of yourself, follow the link to get a gravatar.

You must be logged in to post a comment.