Has Our Market Turned Into a Seller’s Paradise?

According to the stats, our Phoenix market is in unprecedented territory.

 

Where does our Phoenix real estate market stand as we move through February?

Before I get to that, a quick announcement of import: My team and I have changed our brokerage's name to RHouse Realty. We’re still the same group, and you can count on the same exceptional service we’ve always provided. We couldn’t be more excited about this change!

Now to the topic at hand. It’s difficult to describe what’s happening in our market because we’re entering new territory, with records breaking in terms of contracts being accepted and low inventory. 

At 1:11 in the video you can see a Cromford® Market Index graph from the beginning of February that dates back to the beginning of the century. As the graph shows, we’ve only been in a true buyer’s market three times since then. The first time was back in 2001. The second time was from 2005 to 2009 during the housing crisis. The third time was for a brief period in 2014. As you can see at the right of the graph, we’re currently in an extreme seller’s market. 

 

 

However, we’ve not hit the peak of the market yet, so it’s still a good time to buy. Nobody wants to buy a home and immediately see it depreciate in value, right? Why is the market still climbing? The first reason is population growth: Last year Phoenix grew by 17% while housing only increased 9%. 

In other words, demand is stronger than supply, so if you’re thinking about selling, there’s no better time than now. Last month, 35% of all homes sold for over asking price. Inventory is very low, so you have an opportunity to sell quickly and at a high price. If you’re a buyer, I know things are difficult with this low inventory, but you don’t want to wait. If interest rates change, your affordability could be affected. 

Give me a call today and I’d be happy to review your options whether you’re buying or selling. I look forward to hearing from you!