‘Is the Phoenix real estate market in a bubble?,’ is the burning question on the minds of Halpern Residential’s clients and friends alike. Historically, Phoenix has been an appealing real estate investment market because of its relative value compared to other more expensive metropolitan areas. Coupling that perceived value with remote working becoming more of a standard – Silicon Valley can be anywhere! Why not beautiful, accessible, friendly Phoenix, Arizona?
The Phoenix metro area and especially North Central Phoenix communities have strong appeal for their unique neighborhoods, bang for the buck, and convenience to amenities and attractions. These are just some of the reasons why the demand for homes is so high right now.
Trevor Halpern, CEO of Halpern Residential at North&Co. says, “Unless supply increases significantly, demand drops, interest rates rise precipitously, or a combination thereof, housing values in Phoenix should continue to rise through the foreseeable future. As to whether or not we are in a ‘bubble’ I think the data shows us clearly that we are not.”
For those who want to compare this time to the one leading up to the 2008 housing bubble, there are some important differences to consider: 1)The current buyer interest is genuine, not driven by the mortgage industry offering loans to almost anyone. 2) Homeowners are now more ‘equity-rich,’ according to a fourth-quarter 2020 U.S. Home Equity Report — 17.8 million residential properties in the United States to be exact.
Realtor.com predicts that the Phoenix metro will see an 11.4% increase in home sales over last year, which exceeds the national average. Existing home sales will see an increase of up to 7%. Additionally, mortgage rates are still at historic lows.
Although it’s a seller’s market, both buyers and sellers can benefit with the right mindset in the current Phoenix real estate climate. It’s helpful to think strategically, keep a cool head and stay informed. Remaining mindful of your budget, and being prepared and resourceful in the face of small delays that can happen when selling or buying is key. Halpern suggests a ‘ready to win’ attitude and he believes that fully preparing buyers and sellers for the market dynamics helps prepare them to do just that.
Trevor and his team realize that the market for both buyers and sellers is challenging right now and they pride themselves on relieving the pressure on their clients through a strategic approach, where knowledge, processes and people (the team) relieve your burden and enable your success.
Housing bubble? No! Dynamic marketplace that is winnable with the right approach? Yes! The entire team of Halpern Residential at North and Co. is here to help you navigate this vibrant real estate market and make sure that your home buying and selling needs are seamlessly met. If you have questions about housing bubbles, market conditions, or want to talk nerdy about real estate in general, Talk to Trev! Contact him on social media, and or check out his YouTube channel s— Fireside Chat w/ Trev and Nerding Out in North Central.