Why Are House Prices Rising?

There are a number of reasons why house prices in Arizona are rising currently. There’s macro factors like long term population growth, family dynamics etc.

The simplest driver of prices right now is lack of supply of homes for sale.

Every day agents log in to the MLS and search for homes for their clients. On the MLS dashboard is a thing known as a Hot Sheet. A quick and dirty summary of what’s new in the MLS that day for your preferred area.

Here is today’s Hot Sheet for Scottsdale.

Scottsdale Real Estate Market Today
Scottsdale Real Estate Market Today

The new listings being added are just not enough to cover all of the other expected activity.

If the supply of good, available houses is too low for the demand of the buyers, prices will inevitably increase as buyers become willing to pay more to insure they get a home.

Imagine you work for a company and are transferred to Phoenix metro. 3 years ago you would have had around 45,000 potential homes to choose from. There’s barely 15,000 fully active homes for sale currently. Drill down to a specific zip code, school district, price  range and size and the choices are limited.

The good news for sellers is the unless supply rises prices will continue to.