REAL ESTATE
THE CHANDLER ARIZONAN | WWW.CHANDLERNEWS.COM | APRIL 17, 2022
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Phoenix metro home price increases likely for months BY PAUL MARYNIAK Arizonan Executive Editor
T
he Valley’s housing market appears to be becoming even more frustrating for homebuyers, judging by some of the recent reports by the leading analyst of home price trends in the Phoenix Metro region. In recent weeks, the Cromford Report said: • Building permits issued for apartments are soaring well above those issued for single-family homes; • Single-family homes on average sold for more than the list price in 28 of 29 Valley submarkets;
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• Phoenix for the 32nd consecutive month led the nation in year-over-year average home price increases in January; • The annual average price per-squarefoot last month continued to march toward a record $300 and already has hit a 20-year high of $289.76. • The portion of the Valley market in distress because of lagging mortgage payments is the smallest ever seen and “having absolutely no impact whatsoever on market pricing.” In looking at building permits pulled in February from Maricopa and Pinal county municipalities, Cromford said, “Multi-family permits are some 60% higher than the long-term typical count
of 10,000 per year.” Currently, the annual rate is over 16,100. And while single-family permits for Maricopa and Pinal counties totaled 3,155 in February – the highest total since April 2021 – “it is not higher than the long-term typical rate since 1996,” it said. “We saw a collapse in permit counts in 2008 which recovered very slowly,” Cromford said. “The lull lasted until 2020. But typical monthly rates between 1996 and 2007 were around 3,000 and they have resumed at that level since 2020. “The overall picture is that multi-family permits are well above normal while single-family permits are at a normal level.”
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But the “normal level” means the region’s tight single-family home inventory remains a problem – and why Realtor. com warns of a continuing rise in prices. “Home prices continue to rise because housing demand outpaces housing supply,” says Danielle Hale, chief economist of Realtor.com. “And the way the market balances that is by pushing prices up.” Added Cromford: “Demand has faded but only by a slight amount while supply remains extremely low and new listings are dropping further. The level of imbalance in the market remains enough to keep prices rising for many months to come, though we expect the third quar-
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