Will The Phoenix Real Estate Market Crash?
The question that we have been asked repeatedly these past few weeks is whether our real estate market will crash like it did during the recession in 2008. We honestly do not see that happening. Who knows what our market will be like in one year. But right now, things are moving along.
Prior to the COVID-19 development, we were in a seriously strong sellers market for at least a year or more. Particularly in the lower price brackets. We’re talking multiple offers, offers above list price, super strong competition for the little inventory that was available. Even with stricter guidelines in banking and mortgages, the buyers are out there.
Basic economics of supply and demand state that when demand is high and product (in this case the product being homes for sale), prices naturally increase. And boy, have we really seen prices increase these past couple of years! The current average sale price of a home in the Phoenix metro area is close to $300,000.
With COVID-19 happening, the number of homes for sale has increased about 20%. So far, the number of homes available continue to meet the buyer demand. If anything, this pandemic is currently balancing our market. Prices are not plummeting dramatically. There are the usual price reductions for some properties throughout the valley, but nothing drastic overall.
I leave you with this thought, if you were thinking of buying before the pandemic shenangigans started, why delay? Interest rates continue to be relatively low and there are plenty of homes to choose from. Same for sellers. Consider putting your home on the market now. There are strong, serious and very interested buyers out there competing for your home.
Stay healthy, my friends, and let us know if there is anything that we can help you with not just during these pandemic times, but at any time.