We used the weekly active listings Tableau chart to create the custom chart below:
This is for single-family detached homes across Greater Phoenix, priced at $500,000 or less. There are just 1,943 of them for sale compared with 10,253 in December 2018. At the time we thought 10,254 was low compared with normal, and it still is. 1,943 is a crazy number for a metropolitan area of nearly 5 million people.
We also note:
- there are hardly any distressed homes for sale
- the first week of January has seen the number stabilize, but not increase
- last year the count also stabilized for a couple of weeks but then started falling away rapidly between mid January and mid March
- The jump in April and May 2020 was caused by lock down and looks unlikely to reoccur in 2021.
Prices are likely to increase massively over the next 6 months in these current circumstances. This applies even if demand cools considerably.
_____________________
Simple: Supply & Demand!
Fundamental Law of Economics: Record Low Supply plus Record High Demand = 'Massive' Appreciation.
In pictures:
Supply (Active Inventory):
Demand (Sales):
Appreciation:
No comments:
Post a Comment