According to the Realtor.com® 2017 National Housing Forecast, the Phoenix real estate market is projected to be the top housing market in the nation for 2017.
“Phoenix housing market predicted to be No. 1 out of 100 local metro forecasts”
The report also states that “strong local economies and population growth will continue to fuel the nation’s hottest markets”. Thankfully, the strength in our market seems to be coming from a much more diverse economy than we have seen in past upswings, where the buiding and construction industry created the heaviest concentration. As we have been talking about for quite a while now, it is nice to see so many jobs coming to the region. Heck, two more recent announcements unveiled that 1500 jobs in Downtown Tempe and 2000 workers are coming to Casa Grande to work for Lucid Motors. We are hearing that Lucid looked at more than 60 markets in 13 states before selecting Arizona as a place to do business. These kinds of jobs go a long way in helping us be the top housing market in the entire country.
Getting Off Of The Fence:
We are seeing home buyers and home sellers “get off the fence” while they can right now. For some sellers, they have felt trapped in their homes, because the crash in the market removed any equity they had in their homes, and they either would or could not sell at a loss. Since most of our market is back to pre-recession prices or above, sellers are able to either move up or move down without “losing” money.
Realtor.com® Forecasts Post-Election Economy to Result in Higher Mortgage Rates
For many current home buyers, the time seems right to buy a home because they are working, the interest rates are still near historic lows, and monthly mortgage payments can be lower than rising rental prices. As stated in the Realtor.com® forecast, post-election interest rates are likely to continue to rise. This rise in rates, along with the anticipated price increases of 5.9% in the Phoenix area, mean that a buyer could be well served to purchase sooner rather than later.
While I still can’t seem to clear up that ‘ol crystal ball of mine, I will go out on a limb and say that I have a really good feeling about the overall health of the Metro Phoenix real estate market. To me, it feels like we are in a balanced market – a market where buyers and sellers are able to actually buy and sell. Unlike some of the markets in our not-too-distant past, where it was either painful to be a buyer or a seller, we seem to be enjoying a time when people are working and homes are still relatively affordable.
Only time will tell if we end up being the top housing market in the country. One thing is for certain, we would love to have the opportunity to help you make good sound real estate decisions this coming year…