What kind of market should we expect to see in the coming year?
Are we going to experience a buyer’s market, seller’s market, or a more balanced market in 2022? Over the last 21 years, the greater Phoenix area has had a buyer’s market for 43 months, a balanced market for 55 months, and a seller’s market for over 155 months. The longer a seller’s market lasts, the more people change their definition of normal. Normal for the greater Phoenix area is still a seller’s market.
From 2015 to 2019, homes used to take two to three months to sell, and 19% of them sold for over list price. $2,500 over list price was considered an amazing offer. 28% of sales saw the seller paying the buyer’s closing costs, and we had 9% annual appreciation.
“The longer a seller’s market lasts, the more people change their definition of normal.”
In the last 18 months, homes sold within one month, and 60% of them sold for over list price. Now, $10,000 over asking price is only a good place to start. Fewer than 3% of sellers paid for any buyer closing costs, and we had a whopping 39% annual appreciation.
National analysts are suggesting that the market will soften in 2022. However, local analysts believe the Phoenix market will continue to rise. We’re expecting 5% to 10% additional appreciation. A full-price offer may be enough to win a home, and buyers will be less pressured to waive the appraisal or inspection and skip repairs.
If you want to know more information about our current market or if you have any other questions, please reach out to me at 602-942-7000. I look forward to hearing from you.
