{"id":1,"count":101,"description":"We hope you all had a wonderful holiday season.  \r\n\r\nAs our year begins it is appropriate to take a quick look at where we have been and where we may be headed for 2022.  2021 saw one of the strongest seller real estate markets ever.  What began as an accelerating sellers\u2019 market in the 3rd quarter of 2020, went hyperbolic in the first half of 2021.  Multiple offers and contracts 10-20% over list price led to price appreciation in the 28-30% range for the year.  If you owned a home in the valley during 2021, you should celebrate your staggering new home value.\r\n\r\nSupply\r\nThe cause of this extended seller\u2019s market has been the ridiculously low supply.  We ended the year with supply 67% below normal and dropping as of this writing.  Hard to believe that 67% below normal is an improvement from where we were in March\/April when we had only about 4100 properties for sale in the entire MLS. To make matters worse 10% of those properties weren\u2019t in the valley but listings from outer areas (Prescott, Sedona, etc.) leaving the true number somewhere around 3600.  Builders, the source of new housing - struggled with supply chain issues, spiraling commodity costs, in addition to inadequate staff to build those new homes.  Hence, new housing has trickled on to the market rather than arriving in the torrent needed.\r\n\r\nDemand\r\nDemand has remained strong and stable (and is currently 23% above normal). However, a good portion of this demand is from institutional buyers rather than owner occupants.  This gives us some measure of concern for the future when the institutional buyers eventually leave the market.  Large hedge funds (landlord model) and the iBuyers (cash buyers that quickly resell) have been a significant factor in our marketplace.   Stable markets produce owner occupant demand \u2013 which wane under rising prices.  We have seen some softening due to price rises from this sector, a good sign.  But demand has not dropped from the institutional buyers.  Even with Zillow\u2019s high profile exit from the iBuying arena, we believe iBuying will be a part of our marketplace for a long time.  However, we do expect institutional landlords to cease buying at some point when they have enough in their portfolio.  With rental rates in Phoenix rising the fastest in the country (up 14 % in 2021 vs the US average of 6%) you don\u2019t have to ask why they are buying here.  \r\n\r\nUntil demand drops and supply jumps, there is no chance on pricing doing anything but going up.  That brings us to the future and how it may compare with 2021.\r\n\r\nThe future\r\n\r\nOur real estate market has been in a seller\u2019s market for so long (since 2015) that an unbalanced market has become our new normal.  \r\n\r\nTo put that in perspective, here are some fascinating numbers from Tina Tamboer of the Cromford Report:  \u201cOver the past 21 years, Greater Phoenix has been in a buyer market for a combined total of 43 months (3.6 years), a balanced market for 55 months (4.6 years) and a seller market for 155 months (12.9 years).  This is important to discuss because the longer seller markets last, the more human beings change their definition of what \u201cnormal\u201d looks and feels like. \u201cNormal\u201d for Greater Phoenix is not a balanced market, it\u2019s a seller market. \r\n","link":"https:\/\/nohasslelistingblog.com\/?cat=1","name":"Hello 2022","slug":"real-estate-market","taxonomy":"category","parent":0,"meta":[],"_links":{"self":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/categories\/1","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/categories"}],"about":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/taxonomies\/category"}],"wp:post_type":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fposts&categories=1"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}