Phoenix Housing Market Update January 2020
Phoenix Housing Market Update- January 2020
Hello everyone! Jaime Meraz here with The Meraz Group and I am bringing you the very first housing market update for 2020!
Now that the holidays are behind us and new years’ resolutions have been made, we are expecting to see a VERY strong start to the Phoenix housing market.
As we begin a bright new year a lot of the macro-economic indicators remain unchanged. For example- low inflation, low unemployment and low interest rates and we’ve seen moderate wage growth throughout 2019. Nationally, the “housing market remains on solid ground,” according to the National Association of Realtors Chief Economist Lawrence Yun. Although he does note the only item needed to make it stronger is more supply, and we’ll get to that in a minute.
Locally, we’re seeing the same growth as the national picture but at an extreme. The most recent S & P Case-Shiller Index once again rates Phoenix as the #1 large market in the country for housing price growth. Throughout December the number of listings available continued to shrink to historical lows with the number of listings available under 17,000 for the first time since 2004. Buyers are getting squeezed at both ends because we also had historical highs for the number of homes sold in December while carrying the lowest number of listings. Naturally this has led to an increase in prices. The average cost per square foot in the Valley has increased approximately 5% in the last 3 months alone. That would take a single-family home priced at $350,000 in September to $367,500 today. As we look forward to the first quarter of 2020, we expect to see the consistently low number of homes to continue forcing prices higher as we head to the spring.
The market is heavily skewed towards sellers and desirable homes priced well will continue to sell quickly and for top dollar. If you’re a buyer, be prepared for quick decisions and even a bidding war or two.
To summarize though, this is HEALTHY growth in the housing market. We have an incredible city and state to live in that is attracting large and small employers and transplants from high cost states around the country. Until the housing supply side grows, expect to see continued price increases and competition. As always, let us know if you have any questions and from our family to yours Happy New Year and best wishes for a fruitful 2020!