The word on the street is that the Phoenix residential real estate market is ‘on fire’ or ‘hot.’ Trevor Halpern of Halpern and Associates says that this is an unbalanced perspective. The number of home sellers are on the rise, and yes, there is an enthusiastic group of buyers, but this is not your typical real estate market. Circumstances show a continued and growing appeal of our city’s amenities mixed with certain economic conditions. There are some key factors that are driving Phoenix’s desirability:
1. Value: Phoenix still has room to be aligned with other major metropolitan cities (i.e. San Francisco, Chicago, and New York). We are seeing a record-breaking influx of people moving here from higher-priced areas. They see the potential for growth and also the affordability of this city. In light of this, these newcomers have the means to compete in bidding wars.
2. Weather: Regardless of high summer temps, residents can experience resort-like living year-round. This means the outdoors are your playground. Many homes either have a pool, a community one is accessible for gated neighborhoods, and or those with HOAs. Plus, Phoenicians are lucky to have a bounty of scenic local and state parks with hiking and biking trails.
3. Home offices: Families and professionals alike want additional spaces for home offices and online education. Because our metro area is more spread out geographically than other cities that can only build up vs. out, there is acreage for growth and expansion.
4. Demand: Buyer demand is on the rise with no end in sight.
5. Low-interest rates: Borrowing money is at all-time historically low rates, which means you have greater purchasing power. This is partially the cause for the increase of interested buyers. Low-interest rates drive a competitive marketplace, which pushes home prices up – and particularly because of the low inventory.
6. Lack of inventory: The number of homes for sale on the market is under 5000. There are more interested buyers than there are available residential properties.
This is an exciting time for home values in North Central Phoenix and the city overall. However, whether you buy or sell a home at this time should not hinge on market trends, or as a hastily pursued money-maker. Decisions such as this should empower your life. If it is lined up with your goals, supports your lifestyle and that of your loved ones, then it is a good time to enter the market.
If you need a buying or selling strategy and want to make sure it is a win-win all around, the team at Halpern and Associates are here to help you. You can also get tips from our other blog post this month about what you need to do to buy or sell a home efficiently and successfully.
If you have any other questions about this market or residential real estate in general that are not answered here, check out Trevor’s monthly Fireside Chat on his YouTube channel, or drop him a line on Facebook or Instagram.