In good news for buyers and renters, the supply of available homes for sale and rent are increasing – in particular, rentals!
Rental listings have increased the past 4 weeks, 45% compared to the same period last year. 10,072 new rental listings have come on the market year to date (YTD) which is a 26% increase in new listings compared with 7,995 last year.
Residential “for sale” listings are up slightly (10,476 vs 10,387) for the same period last year. The “for sale” active listing count has jumped 27% in just 4 weeks. According to the Cromford Report, this is a faster rate than we experienced in the listing explosion of April 2005. Also, per Cromford, “if this growth rate persists through May and June, the market will be very different in July.”
So, our market (sales) is in a cooling trend, but prices continue to increase. The Phoenix Metro area has led the nation for 33 months in price increases. Per the latest S&P / Case-Shiller® Home Price Index® numbers published on April 26, Phoenix’ year over year (YOY) appreciation is 32.9%. The national average is 19.2%.
”The short story is that a buyer in Arizona, requires 32% more income to afford the typical monthly payment compared to one year ago.”
These numbers will remain high for the next few months when we will (probably) begin to see the trailing response of lower priced closed sales. Please note the word “probably.” In this market, anything and everything is possible.
In another view for how much our market has appreciated we look to the past two years for each of our major cities in Phoenix metro. The chart below speaks for itself:
Jonathan, use this Chart from April 30th Daily Observations.
Finally, I’ve linked to an article of interest from Redfin. It’s worth your time to read. The short story is that a buyer in Arizona, requires 32% more income to afford the typical monthly mortgage payment compared to one year ago. The Phoenix metro area had the 5th highest appreciation in the country.
There is a name for this: Crisis.
We’ll be talking more about this in future Snapshots.