The problem with trying to make sweeping, generalized statements about the Phoenix housing market is that it changes so quickly. The information that has been proven most timely and reliable comes from Michael Orr, The Cromford Report, and The W.P. Carey School of Real Estate at ASU. No other sources target and study only Maricopa and Pinal counties, update the information daily, and are so careful about how they interpret the statistics.
Right now, contrary to an article in The Arizona Republic on February 18, 2015, home prices remain flat in most areas. Some areas are rising or falling but no more than 1.5%. The reason that average price per square foot is showing a slight rise is because for the past year, 27% of the homes sold have been over $3,000,000. Homes under $175,000 represent a very small portion of total home sales because the investors have left our market for better prices in Nevada and Florida. The market that has been the slowest to sell has been the move-up buyer/seller: $175,000 to $600,000 range. However, in 2015 that market has been popping! This is great news for all of us as it may be signaling more mobility within our communities as well as population growth.
2014 was a year of low to average supply and unusually low demand. Phoenix has usually pulled a population growth of around 120-150,000 people each year and we are now averaging only 60,000. We are also seeing more renters from younger generations who watched their parents lose equity in their homes. Additionally, the new Frank Dodd regulations for lenders are making it harder to qualify for loans; average FICO score now is 754 as opposed to around 620 during the recession. And many young professionals are dealing with student loans that block their ability to qualify for a loan.
But there is reason for optimism: the Feds are now reviewing their lending requirements and considering loosening their grip; Arizona is predicted to be one of the better job markets as more mid-level jobs (tech industry) enter our cities; right now we have more homes under contract (pending) than we did last year at this time; we currently have a balanced buyer/seller market in Phoenix and many other cities.
If you want more specific information about your neighborhood, please do not hesitate to contact us!
If you have been waiting to sell, let us do some research to determine the demand in your area. If you have been renting you are likely seeing your rent increase - now is the time to go shopping!
Call us today! We are here to help you determine if now is the time to buy or sell!
