The Phoenix housing market has been what most consider to be a “seller’s market” for the last few years. If you look at the numbers, the average home price increased by about 23% from November 2012 to November 2013. That increase has been a boon to the overall economy of the Phoenix Metro Area. The numbers for the end of 2013 indicate a little different trend than the fast pace rise we have seen however.
Inventory is increasing and buyer demand seems to be somewhat decreasing, especially as some investors step out and more people decide to stay where they are. Is this really a bad thing though? Here in Phoenix we are almost scared of cruising in neutral. We have been on the up and down so much that people think the slightly slowing market is a sign that things are going to go back down hill. There are still some indicators though, that point to a continued strength in the Real Estate Market. One item of interest is that the Luxury Market- homes above $500,000. They are still seeing an increase. Another good indicator is that the number of foreclosure notices being sent out has gone down by 50% from November 2012 to 2013 (Stats from ASU News, W.P. Carey School of Business). This to me is as much of a good indicator as anything for our Phoenix economy. While things are not back to where they were, at least more people are being able to somehow keep their homes. I don’t know about you, but I think cruising in neutral for a while would go a long way to building the foundation of a stable real estate market in Phoenix.
I would really like to hear from current home buyers and sellers about their thoughts on this. Take a moment to post a comment!
Looking for more year-end stats? Click Here for January 2014 ARMLS Stats.
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