Phoenix market holds sustainability
In the past year, Phoenix home prices have increased by 22 percent, and the state ranked No. 1 in the nation for price gains, according to the Phoenix Business Journal. A recent report released by CoreLogic found that single-family homes in Phoenix-Mesa-Glendale area rose 16.9 percent excluding distressed properties and 21.8 percent including them.
From July to August, prices were up 1.4 percent in the Phoenix-metro area. The year-over-year increases were the largest of any state or metropolitan area, demonstrating the exaggerated market in Phoenix. The city is leading the nation in increases; however, the inventory of real estate in Phoenix for sale has decreased by 23 percent. This shot prices up by 24.9 percent.
Financial expert Sasha Cekerevac reported that these gains are a significant signal to individuals who are looking or thinking about purchasing property. The housing market is heading in the right direction, even though it is still fairly far from the way it was prior to the bubble. As of now, prices are expected to remain stable with several gains for the next few years.
“Sustained economic recovery in the U.S. requires a healthy housing market. You cannot have a healthy housing market without price stabilization and ultimately home price appreciation,” Anand Nallathambi, president and CEO of CoreLogic, said in the report. “Improving pricing trends over the past few months and our forecast for continued gains in September bode well for a progressive rebound in the residential housing market.”
Phoenix has become a benchmark for other markets, holding ground in September and showing the strongest gains in the country. Experts believe that over the next two quarters, Phoenix prices are expected to grow another 10.7 percent. September prices across the country are expected to decline in Phoenix, which would be the first time in six months. CoreLogic predicts a 3 percent drop from August, but a 5 percent gain over the previous year.
Within the next few years, Phoenix residents can expect to see more construction of homes and condominiums. Family Development, a California-based company, is expected to deliver 35 homes and 68 condominiums within the next few years. The developers were attracted to the Phoenix area because of its burgeoning real estate market and the demand for more homes, according to the Phoenix Business Journal.