Real Estate Recap June 2022
Phoenix Real Estate Market can change quickly, so to be a successful real estate investor you need to be kept in the loop! That is why we collected the top real estate news you need for your Arizona real estate investments.
Rising supply, rents, and sales are the top topics for a Phoenix investor. Here is Your Real Estate Recap For June 2022!
Phoenix is #2 In Nation For Yearly Sales Growth
The latest S&P / Case-Shiller® Home Price Index® numbers were published on May 31. The new report covers home sales during the period January to March 2022. So they do not reflect sales since April 1, 2022.
Comparing with the previous month’s series we see the following changes:
- Seattle +5.57%
- Denver +4.47%
- Dallas +4.30%
- San Francisco +4.26%
- San Diego +3.74%
Phoenix dropped to 11th for monthly sales growth of +2.98% but remains above the national average, which was 2.55%.
Comparing year of year, we see the following changes:
- Tampa +34.8%
- Phoenix +32.4%
- Miami +32.0%
- Dallas +30.7%
- San Diego +29.6%
Phoenix dropped to 2nd, with Tampa taking the #1 spot for year over year growth. Phoenix spent a total of 33 consecutive months at number one, establishing a new record. The national average was 20.6%.
Supply Doubles
Supply has risen a lot in Phoenix in the past few months. According to the Cromford Report, Inventory has almost doubled from 16.4 to 32.2 days between mid-March and late May.
Additionally, The average Cromford Market Index for the city declined by 33%. The worst affected are Avondale, Gilbert, Queen Creek, and Cave Creek, all down by 37% or more, while Phoenix is down 35%.No city is over 400, even though, in March, 14 of the 17 cities were over 400.
As of now, the listing success rate is just under 90% for Phoenix, a promising sign for investors.
Phoenix Rent Hits Record High of $1,915
The U.S. Median rental price hit a new high ($1,827) for the 14th month in a row, according to the Realtor.com Monthly Rental Report. Metro Phoenix’s rent price exceeded the national numbers, with a median rental price of $1,915, a 20.1% year-over-year increase.
Metro Phoenix Rent Increases:
- The Phoenix median rent price of a studio apartment is $1,429, a 20.4% year-over-year increase.
- The median rental price of a one-bedroom apartment is $1,650, a 20.7% year-over-year increase.
- The Phoenix median rent price of a two-bedroom apartment is $2,225, a 14.7% year-over-year increase
Nationally, studio rents grew at a faster year-over-year pace (+17.2%) than one-bedrooms (+15.6%) and two-bedrooms (+15.9%). This is largely due to the ongoing rental market comeback in major downtowns where smaller living spaces are common, with studio rents up double-digits over April 2021 in all 10 of the biggest tech hubs
According to the latest report, national rents continue their record-breaking increases. Experts cite the increases to lower rental supply, rising demands, inflation, and housing supply shortage. If these trends continue, national asking rents will surpass 2022’s forecasted year-over-year growth projections (+7.1%) by end of the year.
Summary
If you are investing in Arizona real estate, keeping on top of the market is the key to success. Our Top stories covered the 3 most important topics for investors right now, rising supply, sales, and rent prices.
Real Estate Recap June 2022
- Phoenix is #2 In Nation For Yearly Sales Growth
- Supply Doubles
- Phoenix Rent Hits Record High of $1,915
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