Lack of Phoenix Homes Slowing Housing Market
Across the Phoenix valley, there is nothing but good news for our real estate market. Home values are up. Home sales are up. Distressed sales (foreclosures and short sales) have fallen below the national average in Phoenix where we are now the 8th lowest in foreclosure rate in the country. All in all, it seems that 2017 will be a strong year in the Valley of the Sun.
However, there is one thing that may cause the market to tap the brakes: a lack of housing inventory. Yes, that is correct, while buyer demand is holding strong with our strongest winter in 5 years, the supply simply is not keeping up wth that demand. If you have thought about selling, now's the time for us to discuss strategy for you.
Here are the thoughts of a few industry experts on the subject:
“Total housing inventory at the end of December dropped 10.8%...which is the lowest level since NAR began tracking the supply of all housing types in 1999. Inventory has fallen year-over-year for 19 straight months and is at a 3.6-month supply at the current sales pace.”
“More than two-thirds of the markets are seeing less inventory now compared to a year ago.”
“The dismal number of listings in the affordable price range is squeezing prospective first-time buyers the most. As a result, young households are missing out on the wealth gains most homeowners have accrued from the 41% cumulative rise in existing home prices since 2011.”
“The lack of affordable supply is really driving up home prices.”
“Tight housing inventory remains a constraining factor limiting stronger sales growth…
We expect further price growth to entice more homeowners to list their homes, particularly as existing homeowners have greater equity.”
If you are thinking of selling, now may be the time. The Spring is the strongest time of year for sellers who will statistically get more for their home in the Sping then waiting until later in the year. Right now, demand for your house will be strong at a time when there is very little competition. That can lead to a quick sale for a really good price.
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