Greater Phoenix Residential Market

Fletcher Wilcox
Russ Lyon Sotheby’s International Real Estate
fletchw@cox.net
Founder TheWilcoxReport.com

Maricopa County Number One County for Increase in Population

Major Counties with Decreasing Populations

Greater Phoenix Median Purchase Price $515,000

Cash Purchases Increase

Maricopa County Number One County for Increase in Population

Out of all counties in the United States, Maricopa County had the greatest year-over-year increase in population according to the U.S. Census Bureau. From July 1, 2020 to July 1, 2021 the population of Maricopa County increased by 58,246 or 160 people per day. See Table One. This is the sixth consecutive year Maricopa County was the number one county in the U.S. for numeric population increase. The U.S. Census Bureau measures population change by births, deaths, domestic and international migration. They reported that 46,866 or 80% of Maricopa County’s population increase was from domestic migration.

According to the U.S. Census Bureau, Maricopa County is the fourth most populous county in the United States with 4,496,588 people on July 1, 2021. But don’t think that just because Maricopa County is a big county that is the reason why it gained so many people. Three counties have a greater population than Maricopa County. They are Los Angeles County, Cook County and Harris County. All three of these counties had year-over-year shrinking populations. Los Angeles County’s population shrank by 159,621, Cook County by 89,595 and Harris County by 4,461. See Table Two.

March 2022 Results for Sales of Single-Family Resale Homes  

The median purchase price (MPP) in March for a single-family resale home in Greater Phoenix reached $515,000. March’s 2022 MPP was $15,000 or 3% higher than February 2022. Year-Over-Year (YOY) the March 2022 MPP was $109,000 or 27% higher. Sales of single-family resale homes in March 2022 of 6,482 were 1,214 or 23% higher than February sales. The higher number of sales in March over February is primarily because March had 23 closings days compared to only 19 in February. March 2022 YOY sales were 260 or 4% less than March 2021. Days on market declined. In March 2022 they were 28 compared to 32 in February 2022. Days on market were 31 in March 2021. March 2022 listings of 6,726 were 874 or 15% more than February 2022. YOY March 2022 listings were, however, 542 or 7% less than March 2021. March 2022 median monthly rent was $2,295. This is $95 or 4% higher than February 2022. YOY March 2022 median monthly rent was $345 or 18% higher than March 2021.

The Scottsdale median purchase price for a single-family resale home in March 2022 was $1,100,000 which is $100,000 or 10% higher than February 2022. YOY Scottsdale’s median purchase price is $225,000 or 26% higher than March 2021. The Paradise Valley median purchase price for a single-family resale in March 2022 was $3,600,000 which is $272,500 or 8% higher than February 2022. YOY Paradise Valley’s median purchase price is $772,600 or 27% higher than March 2021.

How Homes Are Being Purchase

Cash purchases in March 2022 were 28% compared to 25% in February 2022. March 2021 cash purchases were 20%. In March 2022, conventional loans were 56% of purchases, while FHA and VA purchases were each 5%. Six percent of purchases were in the category “other.”

Thirty-One Cities Purchase Price & Monthly Rent

Table Three shows the YOY median purchase price and the YOY median monthly rent for thirty-one cities in either Maricopa or Pinal Counties. All thirty-one cities had YOY increases in the median purchase price and the median monthly rent.

Market Update Conclusion

The market to own became more competitive in March indicative by the decreasing days on market and the increasing number of cash buyers. Adding to the competitiveness to own is the high number of people migrating to Maricopa County. According to the U.S. Census Bureau the average Maricopa County household has 2.73 persons. Dividing Maricopa County’s year-over-year population increase of 58,246 by 2.73 equates to a need of an additional 21,335 housing units.

The information in this report was compiled from the Arizona Regional Multiple Listings Services, Inc.

The information on sales, listings, median purchase price and median monthly rent were compiled from data provided from the Arizona Regional Multiple Listing Services, Inc. The information contained in this article is for general information purposes only. And should not be construed as legal or financial advice. Readers are urged to consult with a real estate professional, a financial advisor, and an attorney.