A few factors accurately place real estate market in Phoenix in the top housing markets 2017. Many buyers and owner want to know exactly what that means for the metro, for the value their homes and likelihood of a repeat 2007-2008 lull and fall.
Let’s take a look at how real estate Phoenix is improving and why we can still trust its values.
When the economy crumbled one decade ago, real estate market in Phoenix took an especially hard hit. That left the valley recovering later, more arduously and slowly than fellow markets. As other markets have reached new heights and begun to steady, Phoenix has only begun regaining its traction, priming it into the perfect position it is in now.
As the valley took longer to climb up from its fatally low descent, renting became the favored option, and as renting took center stage, prices skyrocketed. Demand for rental housing exploded and with it, rental prices climbed almost as high as markets such as Denver and Los Angeles.
Recently, millennials have taken a second look at their fickle finances and disinterest in settling too permanently. As many found, they are actively wasting money by renting instead of buying, especially in the real estate market in Phoenix. Mortgages are favorable to rental prices, especially with the added benefits of tax write-offs and potential for equity.
So, Millennials are trending toward buying- where does that leave the rest of the market? Although we’re watching fewer Phoenix homes for sale stay on the market for long, we are sitting in a sweet spot for purchases. Soon, the demand for property will transfer back to purchasing homes and we could watch prices climb out of many young buyer’s budgets.
For now, the transition is helping the housing marketing to climb steadily and not so slowly. This spring, we saw home sales up 12.5 percent from last year; homes for sale down 10 percent from last year; and homes selling at an average pace of two days more quickly than last year.
The promising climb is, at the very least, a breeze to inhale cautiously for many. After the boom and hard hit between 2004-2011, realtors near me are slow to applaud climbing that appears to momentous. The industry has since dissected the early 2000s recession, and any of its observed patterns are slow to be welcomed.
One such pattern is the habit of making blind offers, or bidding on homes without having seen the properties. We watched this behavior just a decade ago, buyers confidently purchasing without understanding the true value or lifeline of their real estate investment. However, those years saw home prices increasing at 10 percent each month. In all of 2016, prices rose a total of seven percent.
Some of the behaviors of this year, then, are parallel to last year. Yet, the experts keep running the numbers and coming up empty-handed on reasons for distrust. The more closely we look, the more we analyze the numbers, the more positive reflection we see; as though this is the steady climb we needed in the early 2000s instead of the hyper-catalyzed combustion.
The short of the long leaves real estate market in Phoenix great standing. We are amidst a healthy market and one that will continue to rise. Now is an opportune time for young, first-time buyers to make their investments. perspective is essential to a sound investment. Working with Jeff Barchi allows buyers to make the smartest decision for their finances, livelihood, and current and desired lifestyle. Reach out to Barchi to get started on finding your home in Phoenix’s strongest housing market we’ve observed in years.