5 minute read
Are real estate prices in Phoenix Arizona Starting to stabilize?, by Peggie Simons.
By Peggie Simmons
Are real estate prices in Phoenix, Arizona, starting to stabilize?
Earlier this year, experts predicted that the Phoenix, Arizona housing market would see price appreciation throughout 2021. And true to this prediction, the housing market in Phoenix has been very hot. All thanks to slim inventory; too little to meet the growing demand. It is this supply and demand dynamic that resulted in home prices increasing in double digits. A dynamic that heavily favored the sellers in the market, while homebuyers had an uphill task of finding a place to call home.
In July this year, Realtor.com released a report that showed what real estate markets Nationally attracted more investors. Phoenix ranked among the top areas where investors swamped the market. The report further showed what markets had seen a decline in inventory and where homebuyers faced stiff competition when it came to buying. Phoenix had shrinking inventory in both cases, and homebuyers faced stiff competition from investors who snatched the little available inventory.
While the report released in July indicated a seller’s market, the one published in August showed that the tide was changing. New active listings in the metro Phoenix area went up by 26.3 percent, compared to July’s 25 percent increase. The increase in new active listings prompted Realtors.com’s Chief Economist Danielle Hale to say that this trend is “shifting the housing market balance in a more buyer-friendly direction.” Despite active listings going up in August, the supply of homes is still too small to service the demand.
In September, the ground has shifted yet again. The sales were up 0.8 percent from August 15. However, the number of active listings (excluding UCB & CCBS) has gone down 3.3 percent. With new active listings on September 1 being 6,873,
a 14.4 percent drop from last year’s 8,028. The monthly sales in Phoenix have also gone down 1.8 percent from last year but only down 1.0 percent from last month.
According to metrorealtyaz.com, the drop in inventory can be attributed to two main factors. For starters, the demand from iBuyers and investors has intensified in September, with listings being taken under contract faster than usual. Secondly, as Dennis Kolodin, CCIM- Metro Realty designated Broker, puts it that “Ordinary homebuyers are losing some of their motivation, thanks to prices that are vastly higher than last year.”
Therefore, inventory might have gone up, but home affordability has declined below the normal range for the greater Phoenix Area. And proving this is the fact that sale counts are this month lower than last month and last year.
Going by the current housing trends, the Phoenix housing market is set to remain a seller’s market into 2022. Home prices are still relatively modest compared to other metro cities. The housing market in Phoenix has not cooled; the demand for homes is driven up by out-of-state investors (mainly from LA and Seattle). These out-of-state buyers are and will make the housing market difficult for first-time homebuyers. The current demand is unprecedented, and it may lead to some hesitation from homebuyer’s who may feel that the housing market may crash as it did in 2007-2008. But the current market is different from that of the housing crisis; demand is likely to remain very strong while inventory will still be sparse in the coming months. It is, therefore, safe to invest in Phoenix. And if you decide to buy a home in Phoenix or anywhere in California, you need the right real estate agent by your side. At Power Is Now Media Inc., you can find a qualified and experienced real estate agent to walk the journey with you. head on to www.thepowerisnow.com
ABOUT PEGGIE SIMMONS:
Peggie Simmons has 34 years of experience as a real estate agent and Broker in Tampa, Arizona, and currently serves as the Founder and CEO of Realty Marketing Group, specializing in relocation, new homes sales, traditional homes, marketing & sales, short sale negotiations, foreclosures, luxury rentals, investments among many others. Mrs. Simmons’s hard work, charisma, and genuine passion for her business have helped boost her reputation as a qualified realtor. Mrs. Simmon’s area of interest is real estate, whether it be navigating the way for your first home, or even trying to score a perfect distressed property, or providing help in the luxury market, Peggie knows and has had a taste in it all. Therefore, if you are looking to buy or sell in the Tampa and Arizona region, Peggie Simmons’s expertise and charisma in the field will be your perfect match.
However, if you are looking for a real estate agent in the Riverside area, talk to Eric Lawrence Frazier, MBA, at 800-261-1634 ext. 703. He is not only an excellent real estate agent but a fantastic mortgage broker that can get you preapproved quickly.
ABOUT THE POWER IS NOW MEDIA
The Power Is Now Media is an online multimedia company founded in 2009 by Eric L. Frazier, MBA, headquartered in Riverside, California. We advocate for home ownership, wealth building, and financial literacy for low to moderate-income and minority communities. The Power Is Now Media corporate office is located at 3739 6th Street Riverside, CA 92501. Ph: 800-401-8994 Website: www.thepowerisnow.com
Eric Lawrence Frazier, MBA. President and Founder, The Power Is Now Media
Work cited
https://www.noradarealestate.com/blog/phoenix-real-estate-market/ https://metrorealtyaz.com/arizona-real-estate-market-this-month/ http://www.homebuyinginstitute.com/news/phoenix-market-buyer-friendly-in-2022/
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