There’s no denying it, the Phoenix residential real estate market is one of the hottest in the country. After a brief lull at the beginning of the pandemic in March 2020, the market quickly took off and never looked back. Housing prices are some of the highest we’ve seen and homes are selling fast at those high prices too. You might be thinking “we’ve seen this before and the bubble is going to burst“, but there are some key differences today that might be the ticket to keeping this trend going.
With fewer houses on the market, the ones that are for sale are selling at a much higher price. The housing scarcity is also causing rental prices to go up, leading some to opt to purchase a home because the cost to rent is just so great.
Mortgage rates are at a 50 year low. Lending is a key reason that this real estate boom looks different than that in the recent past. Lenders are taking a much more measured approach to mortgages than what was done a decade ago. In short, today’s loans are based on actual income and not the promise of it. In addition, buyers are putting down more cash to sweeten their offers and stay competitive with other buyers.
Unlike generations of the past, some of the younger generations are moving into the home buying arena much earlier in life. Gen Z, those born in the mid to late 1990s through 2010, are moving quickly to purchase their first homes. Millenials – those born from the early ’80s through the mid-1990s, are contributing to the market as well as they continue to move up to larger homes and second homes.
As the world begins to reopen post-pandemic, many companies and employees have opted to work from home indefinitely, finding greater efficiencies and quality of life. This concept has both contributed to lower inventory (people happy where they are at) and also opened new doors for many as a commute to work is no longer a factor.
We’re Here to Help
Not sure what all of this information means for you? Wondering if now is the right time to buy or sell? Give us a call, we can help! With more than 35 years of combined experience, the Bruske Team is a Phoenix metro expert. Why not work with the best? Gretchen Baumgardner, Jim Bruske, and Mike Wagner -Bruske Team with Engel & Völkers – are one of the top real estate teams in Arizona. If you are ready to work with local, dependable, and committed agents, contact us today!