Our Phoenician residential real estate market is healthy! Eight years of climbing home values have followed the worst real estate crash in our state’s history. (See Chart) It’s taken 13 years to crest above the former highest median sales price in the Valley, which was $260,000 .
Though some negative can be espoused about it, federal banking controls (aka Dodd-Frank) have put into place preventative measures to help insure the lending shenanigans of that bygone housing era wouldn’t repeat themselves. Tighter qualifying and appraisal standards have helped to bolster security in our homes.
So that’s all good, right? Yes, it is – to a degree, if you’re an owner. There are things happening now that could be a precursor to a more rabid sales market, and it wouldn’t take much to cause a spiking of real estate values. Yes, great for current homeowners, deadly for many prospective homeowners.
What are those things?
- Continued low inventory of homes for sale with increased buyer demand
- Continued low inventory of available rentals would increase demand raising rents
- Continued Valley job growth (happening)
- Continued immigration of neighbors moving here, such as from California (happening)
- Lowering of mortgage rates, spurring more home buying (happening)
To name a few.
The concern I have is that most or all of the above are currently happening (including lower mortgage rates) with little settling down. Too much of a push could un-teeter our market significantly.