From low interest rates to high demand, you are probably hearing all sorts of information about what is happening in the housing market. People keep asking us- do you think we are on the verge of a crash? Most of the time, the news reports nationwide statistics, but that won’t help you if your interest is specific to Phoenix and often the information is outdated.
We are providing you an overview of Maricopa and Pinal counties courtesy of our friends at The Cromford Report. On our weekly podcast, we are going over the statistics, city by city, to ensure you have the most accurate and up to date information happening near your home. You can listen to NextView Podcast everywhere you listen to podcasts including; Apple Podcasts, Spotify, iHeart Radio, Stitcher, Soundcloud, or simply click below. We are also talking about a few great investment properties that we have available that are currently “off market” and a consumer report alert that may help you save thousands.
How is the Phoenix Market performing?
Housing supply continues to drop. We only have 10,564 available homes, which is near 50% of the inventory we had at this time last year. Buyers are finding it very difficult to find a home and beat competition due to the lack of inventory especially for buyers shopping in the $200k-$250k price range. The supply of homes in this price range is down 60% year over year. Seller-paid closing cost concessions are also down to only 22% of sales, which is the lowest percentage recorded in nearly 5 years. Higher prices typically suppress demand, but they have not risen nearly enough to have any effect so far. Rising demand and falling supply will inevitably lead to higher prices over the next few months.
What about luxury?
The luxury market continues to trend upward. Sales over $1 Million in 2019 outperformed 2018 by 10%, which makes it the #1 year in Greater Phoenix in this price range. January closings were up 52% in this price range and listing under contracts are up 43%. The 2020 luxury market is on pace to outperform last year.
I mentioned before, the number one question that people have asked me recently is if I think the market is about to crash. In short-No, I don’t believe it is. None of us have a Crystal ball, yet we have access to information that can help us understand what’s driving demand. Phoenix is the number one city in the country for relocation, gaining roughly 25,000 new residents each year. New tech, financial, and medical industries have moved into the valley and they are moving their employees with them and attracting talent from all over the world. Phoenix is a very popular place for 2nd home buyers, vacation homes, and investment properties. Add all those variables to very low interest rates on home loans and you have a perfect storm of opportunity.
If you want to learn more about what’s happening in Phoenix Real Estate, be sure to subscribe to NextView Podcast or reach out to us directly at 480-281-3078