This month's numbers show a continuation of the trend we have seen over the last year and it is accelerating.
Inventories are down. 
Sales volume (up 18% year over year )  & prices are up (11.7%) year over year . 
50% of the homes sold in January went pending within 42 days of the listing date. Our current market can best be described as a full-blown seller’s market. 
Based on public record data in Maricopa County, the median mortgage for a home purchased with a mortgage in January 2019 was $239,700. In January 2020, the median mortgage rose to $264,567. As a % median mortgage rose 10.4% year-over-year, which is in line with the median price increase of 10.6%. Interestingly, a homebuyer in 2019 would have paid $10,474 in yearly interest whereas the 2020 buyer would have only paid $9,180, a 14% declineRates hover near a 5 decade low.   
The forecast for this year remains strong. I think we could see prices break $300,000 for a median sales price by mid summer. ****


  • We are 52% below where we were at this time in 2020.
  • The first week of January is always the lowest supply week.
  • January 2021 was the lowest first week in January in at least 20 years. Historically low. Shockingly low.
  • Seasonally adjusted, we should have 21,000-25,000 the second week of January. Not 5,000!
  • About 10% of all listings in MLS are outside of greater Phoenix. We are way, way, way low.
  • We had 10% more listings in Q4 2020 than in Q4 2019.
  • We had 12.5% more listings in December 2020 than in December 2019 but have 31% greater demand.
  • In 2020, about 100,000 homes were listed, 38 than in 2019.
  • New listings are 36% below January 2020. There were only 2,088 new listings in the first 11 days of the year.
months supply.PNG
Sales prices are up and should continue to $300,000 for a median sales price (possibly by summer)
sales price.PNG


Why do we have a housing shortage?:

This is a housing shortage for real. This is not like 2005-2008. We are waiting for the census for the newest numbers, not yet for the county but soon. Expects all numbers by May 2021.

In 2019 we were already in trouble. We under built the past 10 years. We had a glut of housing in 2008 and it has all been absorbed. Since then we have been behind. Overbuilt for 10 years and then under-built for 10 years. All housing types; rental, condos, townhouses, single-family.

From 2010 through 2019 our population increased by 18% while housing units increased by 9%.

AZ ranked #3 for population growth from June 2019 to June 2020. Behind Texas and Florida. CA lost people for the first time in over 100 years.

23% of inbound migration to Arizona is from California.

We have diversity of labor force and job growth. More jobs are coming because we have lots of highly skilled workers. It is pushing out the people who cannot afford the housing prices. Workforce housing is really being impacted.


Cromford index ** Available on the main page of the Cromford Report:
  • 100 is balanced and prices rise at the rate of inflation, below 100 is a buyer’s market, above 100 is a seller’s market, prices drop below 90, prices rise at 110.
  • On 2/5/2020 we were at 215.1
  • On 3/20/2020 we were at 241
  • On 5/15/2020 we were at 145.2
  • Yesterday we were at 461.4.
  • Prior to this run, the previous peak was 312.9 in the spring of 2005.
  • CMI is the predictor, it moves first and then appreciation follows.

We are 30% above normal for demand. Supply is about 72% below normal. Our supply was stable for most of the year, just at a very low rate. In December inventory started dropping. Demand also started dropping in December. Supply dropped faster than demand and it is still in favor of sellers. Demand is down 4% but supply is down 5.6%

On 1/1/21 we were at 432 and now we are in the 461.4, super-fast increase. We cannot even discuss prices going flat, let alone down until CMI starts dropping. This indicator needs to drop in order to even lead to a price decrease. It will still take us a year to get to a balanced, aka normal, market for prices to go flat. At this rate, if demand dropped now, prices would not decrease until at least 2022.


  • Contract ratio is 171 right now.
  • For every 100 listings active there are 171 in escrow
  • January is always the lowest for contract ratio and December is always the second-lowest, until 2020 and now December and January are the top months for this year.
Please let me know if you, a friend,  or a family member has any questions about buying or selling. 
I appreciate the opportunity to work with you and hope you all have a wonderful day! 
**** cited from armls STAT-