by Justin Lombard
It’s clear from market stats that the red-hot Phoenix real estate market has cooled down to “merely mortal” levels. Inventory levels are rising, unit sales are dipping, and days on market is creeping upwards.
Many investors have set their sights on other markets that they believe hold more immediate upside potential and some of the “Canadian tide” has abated with currency rate fluctuations.
Interestingly, we haven’t seen the falling prices that one would expect to see when supply and demand curves shift. Indeed, much of the trailing 6 months includes the fall months, when holidays traditionally act to reduce real estate sales activity.
If we see the perennial spring and summer pickup, then I don’t expect to see much in the way of price corrections until the fall. In my opinion, prices won’t appreciate much either, though, as any positive effects on the market will be tainted by negative publicity from the media and some industry analysts.
With interest rate levels low, a strong rental market (for investors), and an unbeatable climate for snow birds, I don’t expect our market to decline significantly at any time in the foreseeable future.
Here are some charts to illustrate the state of the Greater Phoenix housing market:
According to official stats published by the Arizona Regional MLS, which covers all of the Greater Phoenix area, the housing market continues to show good momentum. While overall trends remain positive, we’re still seeing some up and down ‘bouncing’ from month to month.