Phoenix housing market predictions 2019 are looking good! While previously a crash was looming, a recent weigh-in from real estate experts reveals that in fact, the Phoenix housing market forecast is sunny. In Arizona, the market suggests home prices will even continue to rise throughout the year. With the market still cooling overall, price gains are expected.
Is the Forecast Sunny for the Phoenix Housing Market in 2019?
Phoenix is a city that recently climbed to the top ten list of the best markets for homebuyers. If you are a new homebuyer or are looking to invest in real estate to flip a profit, you are in luck! The 2019 median home value is approximately $240,000 which shows an 8.7% increase from 2018.
Research teams project that the gains will remain over the course of the year however, they are predicted to be small (around 2.4% over the next 12 months). Only time can tell how supply and demand will affect the gains in home prices, and many analysts suggest it is more likely to be somewhere between 3% and 5% for 2019.
Is 2019 the Year for Homebuyers in Phoenix?
The Phoenix housing market is always fluctuating, but 2019 is still fresh. The year could include some of these reasons why it’s a good year for homebuyers in Phoenix.
- Historically, mortgage rates are still some of the lowest ever seen and remain hovering. In mid-January, the average rate for a 30-year fixed mortgage was 4.45%. However, rates are not expected to stay this low all year.
- The Phoenix housing market inventory is growing, so there are more properties than ever. This makes it an ideal time to enter the real estate market for new homebuyers and investors alike.
- Loan limitations have been increasing in the Phoenix housing market for some time, however, Federal housing officials are continuing to notice increased limits for both, VA and FHA loans.
- Record low unemployment rates promote a stable US economy. With rising job opportunities, the Phoenix housing market also has improved over the years, allowing homebuyers to see more purchasing confidence.
Other Factors Affecting the Phoenix Housing Market
There has been a steady upward trend in the Phoenix housing market after 2012. With a drop in 2009, the recovery simply continued after the housing collapsed and then, from 2012 on, Phoenix real estate has only continued to rise in median home value.
Here are other factors that affect the Phoenix housing market so you can make an accurate investment in real estate for 2019.
Increase in Supply
In Spring 2018, the Phoenix housing market dropped, reaching a dangerous low of only a 2-month supply of homes for sale. The levels recently improved, however, a “balanced” real estate market offers between 5 – 6 months of homes for sale.
Conditions have recently improved, but, the Phoenix real estate market only offers about 3.5-months supply of homes. If 2019 continues to move in this direction, 2019 inventory growth could be a deciding factor for Phoenix homebuyers.
The city of Phoenix is the 11th largest metropolitan area in the country by population. With about 4.7 million residents, it continues to grow in population, employment, and housing opportunities. Population growth is just one factor, and according to the Bureau of Labor Statistics, the unemployment rate for the Phoenix metropolitan area was recorded down to 3.9% at the end of 2018.
But, younger residents are finding places to work, and thus, boosting the overall housing marketplace. Attracting older residents also increases homebuyers in the Phoenix housing market, stabilizing the economy over other areas in the country.
The general consensus among economists and real estate analysts is favorable for the 2019 Phoenix housing market. While it is still a seller’s market, homebuyers in Phoenix can look forward to taking advantage of an increase in homes for sale and a balanced forecast. Call the office of Jeff Barchi to talk to real estate professionals who can help you make the homebuying process enjoyable and lucrative in 2019.