It's taken five years, but at last, we've hit the bottom and begun to rise again. Inventory of homes for sale has been steadily shrinking in the Phoenix area.
Today there are 16, 856 homes for sale in the Phoenix Metro area down from over 50,000 at the peak of the housing crisis. Basic economic theory of Supply and Demand says, shrinking supply equals rising prices. That is what we are experiencing today.
Some segments of the market are doing better than others; for example homes priced under $300,000 are where the real action is. Here you have investors competing with first time home buyers and those people who are downsizing to smaller more affordable homes. We are not yet seeing the Move-up Buyer but they are not far behind.
Good news for people who want to make a change. Now you can sell your home to buy a different one. Financing is getting easier with prices trending up, Appraisals are coming in at or above the purchase price again (we had trouble with low appraisals for awhile), and interest rates are the lowest they have been in my lifetime!
All good news for you if you want to buy or sell. If you have been waiting for the market to change course--it has. Contact your Realtor and get the details for your neighborhood trends.
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