Green Valley Homes | Search Green Valley AZ Real Estate and Homes for Sale | Russ Fortuno, Tierra Antigua Realty
Register Login (520) 333-0446
  • Bloglovin
  • Email
  • Facebook
  • LinkedIn
  • Home
  • Green Valley Homes
    • Green Valley
    • Quail Creek
    • Sahuarita
    • Tubac
  • Quail Creek Homes
  • Area Information
    • Dining Out
    • Golf
    • Green Valley Recreation
    • Mover’s Guide
    • Visitor’s Information
  • Buyers
  • Sellers
  • About
  • Blog
You are here: Home / Blog / Market Trends

Home price appreciation: As simple as supply and demand

June 9, 2021

Home price appreciation continues to accelerate. Today, prices are driven by the simple concept of supply and demand. Pricing of any item is determined by how many items are available compared to how many people want to buy that item. As a result, the strong year-over-year home price appreciation is simple to explain. The demand for housing is up while the supply of homes for sale hovers at historic lows.

Let’s use three maps to show how this theory continues to affect the residential real estate market.

Map #1 – State-by-state price appreciation reported by the Federal Housing Finance Agency (FHFA) for the first quarter of 2021 compared to the first quarter of 2020:

As the map shows, certain states (colored in red) have appreciated well above the national average of 12.6%.

Map #2 – The change in state-by-state inventory levels year-over-year reported by realtor.com:

Comparing the two maps shows a correlation between change in listing inventory and price appreciation in many states. The best examples are Idaho, Utah, and Arizona. Though the correlation is not as easy to see in every state, the overall picture is one of causation.

The reason prices continue to accelerate is that housing inventory is still at all-time lows while demand remains high. However, this may be changing.

Is there relief around the corner?

Map #3 – State-by-state changes in inventory levels month-over-month reported by realtor.com:

As the map indicates, 39 of the 50 states (plus the District of Columbia) saw increases in inventory over the last month. This may be evidence that homeowners who have been afraid to let buyers in their homes during the pandemic are now putting their houses on the market.

We’ll know for certain as we move through the rest of the year.

Bottom Line

Some are concerned by the rapid price appreciation we’ve experienced over the last year. The maps above show that the increases were warranted based on great demand and limited supply. Going forward, if the number of homes for sale better aligns with demand, price appreciation will moderate to more historical levels.

Filed Under: Market Trends Tagged With: Appreciation, Home Prices, Supply & Demand

New Listing

NOTIFICATIONS

  • Email Alerts for New Listings
  • Save Your Favorites
  • Schedule Showing Requests
  • Price Change Notifications
  • Plus More…

Sign Up

What’s Your

HOME WORTH?

Find Out

Client

TESTIMONIALS

"I was so lucky to find Russ. It’s been a long time since I bought a home and working through the stacks of paperwork was daunting! I was so glad to have Russ “be there for me” and to guide me through each step. He was on top of every stage of the home buying process, knew the answers to all my questions and immediately responded (sometimes in minutes). Russ also has a bevy of wonderful local businesses to recommend and a comprehensive website that was exceedingly helpful! You are making a mistake if you don’t use Russ to help you purchase your home in Green Valley, he is A++++."
- E.W., Upland CA
"Russ was very good to work with, patient with questions and showed me a number of properties. Russ was not pushy, always polite and showed me properties that fit with what I was looking for. It was a pleasure to work with Russ."
- J.K., Green Valley AZ
"100% full service. Russ walked us through each step making sure we understood the process. He was very patient with us when we fumbled a bit with DocuSign. Russ was a pleasure to work with and we highly recommend him. There’s really not a lot more we can say except that the purchase of our condo went so fast and smoothly… all due to Russ!"
- S.H., Green Valley AZ
View All

Listing Notifications

Sign Up! New listings delivered to your inbox!
Sign Up Now

Stay Connected

  • Bloglovin
  • Email
  • Facebook
  • LinkedIn
  • Phone

agent photo

Russ Fortuno, Associate Broker

I'm a Southern Arizona native and year-round Green Valley resident. Whether you’re buying or selling a home in the Green Valley or Sahuarita area, you’ll experience unsurpassed service and professionalism at all stages of your real estate transaction. I welcome the opportunity to assist in your next home sale or purchase.
Meet Russ

Tierra Antigua Realty

18745 S. I-19 Frontage Rd., Ste. A105
Green Valley, AZ 85614
(520) 333-0446
Contact Russ

© 2025 Russell E Fortuno PLLC, All Rights Reserved. ADRE BR658088000   •   Privacy