Demand for Phoenix Area Homes to Increase?

We’ve been reporting that it’s a seller’s market for a number of years now.  What that ultimately means is that the ratio of supply and demand weighs heavily in favor of sellers.

Some might infer this means demand is high and supply is low.  Truthfully, the imbalance we have in the Phoenix area lies solely with the supply. Yes demand to date has been pretty average, lack luster even.  But when supply is as low as it is, it makes ordinary demand levels feel higher than they are.

But that may be changing! The Mortgage Banker’s Association has reported a massive jump in loan applications by something like 20%.  This could be indicative of a higher than normal buyer wave hitting us in the Spring.

Local Real Estate statistician Michael Orr believes this could be for any or all of the following reasons:

  • Low interest rates
  • Confidence in the strength of the economy
  • Loosening lending standards
  • Buyers wanting to avoid missing out as prices start to accelerate upwards again.

What would this mean for the Phoenix Area?  Well it’s certainly not good news for buyers, who already are facing an extremely competitive marketplace, particularly in the median price ranges. It also buttresses what my dad prognosticated about a month ago with a potential for sharper than normal price increases over the next year.

Also worthy of note is local Real Estate journalist Catherine Reagor’s reporting that Phoenix metro area is now the hottest market in the country. Depending on what study you look at, we’ve hovered in the top five along the likes of Boise, Idaho and Las Vegas for a few years now. It seems at the moment however, we are the king.

We never really know what’s going to happen next with our market. But when you combine our absolute dearth of inventory with potential for increased demand, the Phoenix Area market really only has one way to go for the time being.

About the Author

I had never really considering following my dad's footsteps into Real Estate, and so I see it as a bit ironic that my first foray into the industry was quite by accident, even though, in a larger sense, I now don't think it was an accident at all.

In 2008 I had fallen in love with an uncommonly pretty girl from Idaho and chased her to her hometown of Boise with the hopes of marrying her.  Well, they say it's important to have a job before embarking on the commitment of marriage and it just so happened that the man who rented me a room on craigslist, also happened to be a Top Producing Real Estate Agent that needed an assistant. (Shout out to Sean Taylor, still the best Realtor in Idaho and he will absolutely rock your socks off!)

It wasn't too long after that I became licensed and started trying to chase my own business.  It was rough going.  Turns out folks aren't super eager to work with a 22 year old agent driving a beater car.  But it was there that I learned the importance and meaning of fiduciary, and what it means to put your client first.  Also, that you mus earn your client's business.

After a brief back-to-school stint to try and finish my bachelor's degree in biblical studies, my dad, the legendary Mike Bodeen invited me to work with him back in AZ.

So the Mrs. and I have been living back in the land of the sun where I've been working with my dad helping to build the family business since 2013. We have two wonderful little girls now and lots of hopes and dreams for us and for them. Real Estate can be tough, when it's been a little too long since your last sale and bills are due, or when a lender or title company is botching a deal and you have to sew it back together.  But I'm so lucky and blessed to have a job where I can work largely from home and watch my little girls grow up.

Too boot, I've discovered the great joy of working hard for your client's best interests and surprising them with excellence. I derive a great deal of personal satisfaction from being instrumental in my clients success. 

I am quick to return phone calls, texts, and emails. I always strive to give my clients all the options possible and the pros and cons of any situation. Ultimately, my quest is to make Real Estate easy for you!