Data showed that it’s not there yet, but supply and demand are starting to get closer.
As featured on 12 News, August 11, 2021.
PHOENIX — Housing prices hit unprecedented levels this spring as increasing demand coupled with low supply, creating a market frenzy.
Potential properties were getting dozens of offers. Homes were getting $25,000 or more over the list price.
“Where 20 to 25 offers on a house was just normal happenstance. Since then, it has slowed a little bit,” Trevor Halpern, founder of the Halpern Residential Group said. “Typically we are seeing two, three, four offers on a place, which is still a lot and is still very competitive.”
Halpern said there has been a recent increase in supply, while some potential buyers are backing away from high prices.
“So as demand has dropped a little bit and supply has come up, it’s released a little of the pressure from the market,” Halpern said.
However, that lack of pressure does not mean prices are dropping. They are just not increasing as quickly.
“I think what we can see in the next 6 to 12 months is a flattening in the appreciation.”
Data from the Cromford Market Index, which measures the housing market in the Valley, supported what Halpern said.
Where 100 is considered “normal,” the Cromford Supply Index rated 29, meaning a shortage of homes, and the Cromford Demand Index rated 106, meaning higher demand.