Categorized | Residential

Phoenix Housing Market Showing Signs of Strength

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The Phoenix residential real estate market has started to show signs of strength and recovery in recent months. It was one of the worst fairing housing markets following the housing crash, as prices fell almost sixty percent from 2006 to 2011.

 

Over the last six months, however, the market has started to recover thanks to a variety of factors. Foreign buyers and investors entered the market looking to take advantage of great deals. Job growth in the region picked up, and with more job creation came greater demand for housing. Inventory levels have shrunken to very low levels.

 

Immediately following the crash in 2008, residential real estate inventory levels were over twelve months in supply. That number has since fallen to roughly two and half months of supply. With inventory levels at such low levels, buyers have no choice but to engage in bidding wars for the properties that they want.

 

The bidding wars had led some areas in Phoenix to shoot up in price. The city of Phoenix as a whole is believed to have already hit its bottom in terms of pricing. As such, prices have increased in the region over the last few months.

 

Many economists believe that the true test for Phoenix will come this summer. Much of the market will be starting to recover at that time, and it will be interesting to see how Phoenix stacks up with other major cities.

 

The Phoenix market has benefitted over the last few months due its warm weather, and the presence of the MLB Cactus League games. Those games have brought potential homebuyers to Phoenix.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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