Phoenix Housing Market Trends
The Phoenix marketplace has been incredibly volatile over the past several years, with dramatic ups and incredible rises in demand followed by dramatic lows and incredible drops in demand. The cycle goes on and on. This summer the market went bust again, demand dropped in July with amazing speed.
History of Change
Starting in 2000 and continuing for six years, the Phoenix market was booming. Homebuilders entered the area and new homes nearly doubled, as did the value of homes. For homeowners interested in selling their properties, this was a great time to be a seller. Both income and population stayed flat during these years. Both were signs the price increases were not warranted.
Then in 2006, the market peaked and then busted in Phoenix. By 2011 homes were worth only about half of what they had been at the peak. What drove this amazing change? Buyers stopped buying and lenders quit lending leading to a dramatic drop in demand.
What’s Happening Now
Phoenix housing market trends are moving once again. This last year has seen an incredible rise in the number of listings in Phoenix, nearly one and a half times this summer over last summer. At the same time, sales are down 2 percent over the same time last year, 4 percent for new constructions. The three years since the bottoming out of 2011 have seen a lot of recovery, but this summer has seen what’s feared to be the beginnings of yet another backslide. The reasons are not entirely clear, but for some reason Phoenix seems to be seeing more dramatic effects than the rest of the country.
References
Zero Hedge. http://www.zerohedge.com/news/2014-07-14/phoenix-housing-market-hit-unprecedented-plunge-demand