Southwest Real Estate Trends Entering Spring

America’s Southwest is a physically and culturally unique region filled with mountains and deserts. It is also one of the most intriguing real estate markets in the nation, with prices surging in several of the largest cities and the surrounding areas. Let’s look at some of the major trends in the area as we move on from a cold winter and start looking ahead to spring 2022.

Nevada

Nevada is a region that has seen prices surge, particularly in the Las Vegas region, where the majority of the state’s population is concentrated. Las Vegas has typically been a more affordable market, but demand has increased and driven prices up as residents from areas like Southern California flock en masse.

According to data from Realtor.com, the median listing price of a home in the Las Vegas metro area was $399,900, which was an increase of 23% year-over-year. One of the main factors in this is the incredibly low housing supply in Southern Nevada. According to Norada, the housing supply in Southern Nevada is now at 0.7 months of supply, which is far below the standard benchmark that indicates healthy conditions, which is six months’ supply.

In Northern Nevada, Reno is an incredibly hot market. Reno’s home values have been consistently growing throughout the past decade, but the past several years, particularly 2021, have been major. According to Realtor.com, the median listing price in Reno was $566,600, a 27.3% increase year over year. This jaw-dropping growth has made the city far less affordable than it was previously.

Utah

Utah is a state with a lot of natural beauty, and that is in high demand right now as buyers flee congested cities. This has led to some areas of Utah having massive increases in buyer interest and prices rising across the state.

Salt Lake City is one of the markets in the United States that is being driven up the most right now as buyers turn to Utah. According to Norada, the median sales price in Salt Lake City rose 23.8% from December 2020 to December 2021. The median sales price of a home in Salt Lake County is now $495,000.

Overall, across the state of Utah, there were 55,588 homes sold, with a median price of $442,200. This price was a 24.6% increase over 2020. The state’s rapid population and job growth are fueling a major surge in buyer activity.

New Mexico

Of the Southwest states mentioned here, New Mexico has the smallest population, without some of the other real estate markets’ major hype. Still, a lot is going on in New Mexico right now, and both buyers and sellers should pay attention.

Albuquerque has typically been on the more affordable end of the spectrum, but prices are on the rise like the rest of the Southwest. According to Realtor.com, the median listing price of a home in Albuquerque in January 2022 was $299,900, according to Realtor.com. This marks a 15.4% year-over-year increase. Albuquerque is considered a seller’s market, with buyer demand for homes higher than seller supply.

Over in Santa Fe, prices reached an all-time high in 2021. December, in particular, was a banner month for New Mexico’s capital. According to Redfin, the median sales price hit $610,000, which was an increase of 18% year-over-year and an all-time high.

Arizona

Lastly, we have Arizona. Arizona is known for its heat, and that parlays to a real estate market that is as hot as they come. Very few places in the United States have seen prices skyrocket more than the Phoenix metro area, but it isn’t the only part of the state that has seen prices climb.

Phoenix has been listed as the second-hottest market in the United States, just behind Austin. According to data from Norada, home values in the Phoenix Metro Area grew a whopping 32.4% from November 2020 to November 2021. This massive growth is unsustainably high and might make the city unaffordable for many residents. According to Realtor.com, the median listing price of a home in Phoenix was $442,900 in January 2022.

In Tucson, Arizona’s second-biggest city, prices are also surging. According to Realtor.com, the median listing price was $329,900 in January, a 20% increase year-over-year. Rising housing costs are a trend across the Southwest as buyer interest in the region surges, coinciding with a lack of supply.