First to go down, first to come back up – at least, that’s what it’s been looking like for Phoenix’s Real Estate market. Inventory data analysis services supplied by the Cromford Report show that we aren’t as dire as we once were. As other markets continue to experience falling prices, Phoenix has been at the forefront of the list of markets to stabilize, as our prices have been quite steady through the most of this year, which is fantastic to see. This has a lot to do with our shrinking inventory – obviously, less houses on the market means more room for prices to climb.
Earlier in this year, Phoenix’s property inventory was shaped with 55% distressed properties (the term ‘distressed’ used in the context of real estate refers to a property that is under a foreclosure order, which tends to be priced much lower than the current market requires) with the other 45% being normal listings. Distressed properties are not at all good; as they drive listing prices lower and lower, forcing home owners striving to sell their homes for themselves to lower their prices, or to wait out the market’s climate change until they can once again get a fair price for their home.
Though current unemployment rates do have an effect on Phoenix’s real estate market, steady employment is not the sole beneficiary of a healthy inventory. Seen throughout any market’s history, after a long price decline, recovery gets kick started as the supply of properties begins to shrink again, in turn causing prices to be able to rise. Ups fuel our downs and the downs fertilize us for the ups, fluctuation is characteristic, and that’s the name of the game in any economic market.
Still on the fence as to whether or not you should capitalize on the current pricing? Well, if I were you I’d decide real fast, before your low priced option doesn’t exist anymore. We’re on the up and up Phoenix, full speed ahead!