Top 5 Predictions for Residential Real Estate in Phoenix
With the metro Phoenix residential real estate market setting new records every day, this could help potential buyers and sellers get an expert’s perspective on residential real estate in the Phoenix market – where it is. currently finds and some forecasts for 2022. Here are my top 5 predictions for residential real estate in Phoenix:
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1. Migration to Arizona is likely to increase
As our weather becomes almost perfect during the winter months, residents will continue to strive for a relatively low cost of living and a high quality of life. Current migration from states like California, Washington and Illinois will continue and potentially increase this fall.
2. Home prices will continue to rise
The entire Phoenix area is breaking sales price records, and I expect this to continue. Supply is just not close to catching up with current demand, and it will take time to reach that point. I expect this increase to continue through 2022 and beyond.
3. It will continue to be a seller’s market
Due to increased demand and rising house prices, I believe this market will continue to be a sellers’ market here in the valley for the foreseeable future. Buyers will need to understand that the competition is fierce, that homes are selling for well above asking prices, and that contingencies are often waived. Planning accordingly is essential, both to maximize the chances of success and to avoid the mental anguish that many experience after several rejected offers.
4. Pinball machines and investors will present a challenge to buyers
With interest rates as low as they are, investors, pinball machines, seasoned vets, and even rookies are extremely active in this market, making it all the more difficult for buyers to find their home. their dreams at the desired price. This trend is likely to intensify as we fly over the winter months and into the spring of next year.
5. Construction shortages will continue to slow the construction of new homes
Labor and material shortages are expected to continue through 2022, slowing the pace of new home construction in the Phoenix area. As a result, the biggest source of inventory for those looking to buy will be existing homes that become available, as homeowners choose to take advantage of rising prices and sell their homes, often moving to another part of the city. city or downsizing.
Alex Molleo is a real estate agent at The Brokery.