We’re now entering a new decade and putting behind us another year. Every year there are predictions about what is happening in the Phoenix real estate market. Continuing price increases, inventory trends, cash investors displacing first time home buyers, foreclosures creeping up again. These are just some of the topics that everyone with an interest in understanding Phoenix real estate trends would like to know about. If you fall into this camp, keep reading.
The Real Estate Market in 2019, a look back
To understand the trajectory for 2020, we need to look back at 2019 and understand what happened during the year and where that puts us going into 2020. Prices continued going upward but why? How different is the Phoenix market from the rest of the country? Are foreclosures in check or are they making a comeback? These are the questions that will be answered in this video:
If there’s one thing for sure, it’s that the market is always a moving target as supply and demand are constantly finding their equilibrium which are affected by interest rate fluctuations, economic trends and changing inventory positions. Understanding the Phoenix real estate market has many moving parts.
The major theme from 2019 and heading into 2020 is there are fewer homes for sale. Add to this strong demand, historically low interest rates and you have a recipe for increasing prices and frustrated buyers. There is about a 2 months supply where a 6 months supply is considered normal. Although it’s hard to remember when we had a 6 month supply. The median home sales price continues to move upward after bottoming out in 2011 and we are closing in on $300,000.
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