Ranch Realty: Greater Metro Phoenix Real Estate News
The real estate market in the greater Phoenix area is red hot. Homes are appreciating at about 3% per month, according to the Cromford Report, a real estate data analytics firm that studies home sales in Maricopa County.
The Cromford Report’s data analyst Ms. Tina Tamboer told 12 News in Phoenix, AZ that 0.5-1% appreciation per month is good and that 3% is unsustainable.
Home price appreciation is great for sellers, but can be problematic for buyers.
12 News interviewed mortgage specialists, real estate agents and homebuyers who said buyers in this market are offering tens of thousands of dollars over the list price just to get a counteroffer on the scant number of properties for sale in the Valley.
So what is causing this rapid rise in prices?
12 News set out to verify one common claim blaming out-of-state buyers, particularly those from California, for pricing Arizonans out of the housing market.
Are California home-buyers coming to Phoenix pricing local buyers out of the market?
No, homebuyers from California are not the primary reason Phoenix home prices are increasing, and may only play a small factor in prices overall.
Not only are California buyers not new, they are a small percentage of buyers, according to the Maricopa County Assessor’s data. In the year of data that 12 News examined, buyers with Arizona addresses buying homes in Arizona accounted for more than 100,000 transactions. Buyers with California addresses did make up the next largest group, but the number of buyers was less than 5,000. Almost as many buyers had previous addresses listed in Texas and Washington as had California addresses.
“Nobody's been complaining about California, until this past year,” Tina Tamboer of the Cromford Report said. “Frankly, California had been one of the number one sources for most of our population growth for as long as I've been tracking it.”
Author: Mitch Carr (12News)
Published: 1:36 PM MST August 3, 2021