Today we’re looking back on our predictions for the 2017 Phoenix market compared to where we’re actually at.
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Back in January, I gave four predictions for what I thought would happen this year in the Phoenix market: Homes priced under $250,000 being very competitive, interest rates, new construction, and the luxury market.
Today, I wanted to break down how those predictions fared.
First, we still see a lot of pressure in that first-time homebuyer price range of $250,000 and under. Currently, there are fewer than 7,300 pending sales in that price range with only about 5,800 active listings for sale.
This means that in this price range, there is less than one month of inventory, which is extremely low, and it’s definitely a seller’s market. Multiple offers on homes are very common and it’s certainly a challenge for buyers looking to get into their first home.
I predicted interest rates would rise this year, which they’ve done with some fluctuation thanks to the stock market going up and down a bit. Overall though, rates are higher than they were last year and we expect them to keep trending up.
“IT’S CHALLENGING FOR BUYERS LOOKING TO GET INTO THEIR FIRST HOME.”
With new construction sales, we’re seeing the activity go up. I can personally say that more and more of my clients want to see new builds because of the fact that they’re move-in ready and brand new.
Finally, there’s the luxury market, which I predicted would get more active this year. Between the $750,000 and $1 million price points, we have 590 pending sales and about 3,300 active listings. That makes for a balanced, healthy, and stable market with about six months worth of inventory, which is much better than it has been in recent years. Over the past few years during the recession, luxury market inventory had been as high as 24 months.
Thanks for looking back on our predictions. If you have any questions about the Phoenix market or you’re thinking of buying or selling a home, don’t hesitate to give me a call or send me an email. I’m always happy to help!
