Here are the latest updates you need to know about Phoenix real estate.
In Arizona at least, we’re continuing to sell real estate, though we’ve adapted to the new normal.
Inventory is starting to go up, and we’re undergoing a slight shift. Values took a dip but are starting to increase again. As one of the fastest-growing cities (and states) in the country, people are still coming into our market in droves.
The pandemic sort of reset everything and pulled the economy back a bit, but I’d say by the end of the year we’ll be back on track again. Things will likely be a tad skewed toward buyers, but overall it will be a balanced market. Since our inventory has started to increase, buyers will come out of the woodwork to look around and see what fresh options they have.
A few important things have changed, most notably concerning how people show and view homes. Buyers must honor the wishes of the folks whose homes they’re touring, and this means wearing masks and other protective gear and using sanitizing stations. It may be the case that the seller only wants one person in the home at a time; you have to be flexible.
3D tours and other virtual tours have proven to be effective tools in the market, allowing buyers to get a pretty good idea of what a given house looks like before they venture out in person. Moving forward, our industry will continue to depend on technology a lot more.
“Interest rates are still unbelievably low, and the Phoenix market is a very affordable one.”
I think that real estate will be one of the economic drivers to pull us out of the recessionand into recovery mode. People forget that we’ve experienced year after year (11 total) of increases in values. It’s imbalanced; history shows us that after so many years, the market sort of resets—a period known as a recession. This one, unlike the one in 2007 and 2008, is not a financial collapse spurred by irresponsible lending amongst banks. Though initiated by a very abnormal event, this current recession is more like a temporary slowdown.
It will take a couple of years to fully pick up steam and once again see continuous increases in values—but it will happen. Around the bend, you’ll probably first see inventory increase and a 3% to 5% give in value over the next three to six months. Interest rates, however, are still unbelievably low, and the Phoenix market is a very affordable one. The median price is still hovering in the low $300,000 range.
Give us a call if you’re thinking about selling and we’ll be glad to help you prepare your home for the ‘new normal’ for showings. Of course, we’re always here to take care of your buying needs, too! We look forward to hearing from you.
