Phoenix Area Market Strength Continues

By Buying, Mike's Articles, Phoenix Metro Real Estate News, Renting, Selling May 6, 2019

Some analysts continue to suggest that the market is slowing, and, indeed it has, but not by much. In fact the stability of our Phoenix/Scottsdale Metro market continues.

Last month saw a healthy growth in listings under contract. This month, that translated into the strong growth in closed sales. Listings under contract grew slightly over last month, which will no doubt translate into stronger sales that we will report on during the first week of June.

Sales are not only recovering, they actually exceeded April 2018 by 5.3%. They were up 13.9% over last month.

According to Mike Orr of the Cromford Report,  home supply is higher than last year, but it is falling more quickly than it did in 2018.

“…the market is more vibrant now than almost anyone expected it to be.” Michael Orr, The Cromford Report.

As The Cromford Report predicted, prices are rising, but at a slower pace than in 2018. The median sales price was up 5.9% compared with a year ago, while the average $/SF was up 5.5%. This is really good news, by which we continue to (at least for now) brag about the strength of our real estate market. Stability IS something to brag about! In many other sections of the country, home prices continue to drop. On top of all this is the recent jobs report which shows that our unemployment rate (3.6%) is at a 50 year low, not seen so low since the height of the Vietnam war when had 500,000 troops in ‘Nam.

The market continues to strengthen and the likelihood of falling prices in the near term is minimal. Buyers waiting because they thought prices would fall have been left in the dust. We have extremely low levels of distress, chronic low supply and the best buyers can hope for is that the appreciation rate will trend lower. We think that is a reasonable expectation, but it shows no sign of turning negative. It would take a very different set of numbers from the ones above for that to be a possibility.

One benefit right now for buyers are decreasing mortgage rates.

About the Author
Michael Bodeen, Associate Broker

     I was born and raised in San Rafael, California, from the mid 50’s to the early 70’s. I had super parents who worked hard to provide 5 kids with a good Catholic education – despite my best attempts to overthrow the knuckle-cracking regime of Sister Mary Anselma. My dad worked as a self-employed butcher until his retirement at 65 and enjoyed many wonderful years until mom passed away in 1992.

     Dad passed away in the fall of 2006 having lived a great and full life into his early 90’s! In California, I attended college in Chico and Sacramento as a “Sosh” major, but like many of my contemporaries, I did not have a clue what I wanted to do when I grew up. Because of my age, I missed the Vietnam War and into my early 20’s I had many typical youthful indiscretions.

     Thankfully, that was a brief period of my life, and with greater thanks, not too much damage was sustained in those early and rebellious years. And by the way, those thanks are due to the answered prayers of faithful relatives who prayed for years that a wayward Michael would turn his life over to the Lord, and in January of 1982 that’s what happened.

     I lived in Sacramento, California in the mid 70’s, and later moved to Truckee, California, which is near Lake

Tahoe and Reno, Nevada. Truckee’s often labeled the “coldest spot in the nation.” Why did I move there?

My father-in-law was a real estate broker in Donner Lake, California, and despite his cantankerous disposition, he seemed very successful in his real estate endeavors. I joined him in sales in July of 1976.

    The Truckee and Lake Tahoe area was a wonderful place to raise a family, but a difficult and cold environment to live in, but we did so for 18 years. In 1994, my wife, Karen, and I visited Scottsdale at a friend’s request, and within 8 months, our family of 5 had relocated to “the valley” – or is it a desert? Whatever it is, it’s warm. At any rate, 24 years have gone by since we made the break from the late great state of confusion, uh, California, and it’s turned out to be a great move.

     As for hobbies, I enjoy family, friends and travel. My kids Robert, Kendra, and Jonathan are now 40,

34, and 31 respectively. I recently became “gramps” for the 4th time as well. It’s a nice time of life. Karen remains as lovely on the inside and outside as the day we were married. We continue to wonderfully grow together as the years advance. As an ordained Christian Chaplain, I volunteer Preaching at Florence Prison with Along Side Ministry. The ministry helps make the formerly incarcerated able to function, even thrive, on “the outside.”

     Should you choose to have me represent you in the sale or purchase of your home, you’ll be receiving my 40+ years of real estate knowledge, counsel, and experience (including negotiation experience).

    Beyond the transaction, I’m always available to you, should you ever need my real estate advice.