Phoenix/Scottsdale Real Estate Market Update – January 2019
Is Phoenix/Scottsdale transitioning to a Buyer’s Market?
We have become accustomed to a hot, growing market that strongly favors sellers. Now that it is cooler, contracting in volume and moderately favoring buyers, there is some talk that we are entering a Buyer’s market. But this perspective is not agreed upon by all because a decline in demand does not necessarily constitute a Buyer’s market.
A Buyer’s market is indicated by supply that is higher than demand and decreasing closed sales prices. In Phoenix and Scottsdale, the supply is still very low, and there is little indication that the supply will increase.
Most indicators that impact the housing market are in normal to good ranges. Compared with California and other west coast metro areas, Phoenix/Scottsdale is still very affordable. There has been no decrease in loan approval rates and population growth is increasing faster than the number of homes. Owning a home still makes better financial sense than renting (unless you expect to own the home for less than 3 years). None of the conditions for closed prices to fall are currently in effect.
The numbers are more reliable than emotion, and the numbers indicate more of a cooling down rather than a downturn – perhaps a return to a balanced market.
*Every Tuesday, we participate in a conference call with our broker and fellow colleagues to discuss the local real estate market, the current real estate news and the latest statistics. Our market update is based on this group discussion and information provided by The Cromford Report, a company dedicated to local real estate market statistics.
News from NAR - National Association of Realtors
- Foreign Buyer Purchases Fall to Lowest Level With Lingering Impacts into 2022
During April 2020–March 2021, the dollar volume of U.S. existing homes purchased by foreign buyers fell 27% to $54.4 billion and the number of existing homes purchased fell 31% to 107,000 units compared to the levels in the prior 12-month period.
- 2021 NAR Real Estate Forecast Summit: Global Update
Housing experts from around the world, including NAR's Chief Economist Lawrence Yun, provide various outlooks on the changing international real estate market.
- July 2021 Commercial Market Insights
Sustained job creation, more consumer spending, and the continuing return of the workforce to the office underpinned the commercial real estate market's recovery across all property sectors in the first half of 2021.
- Annual Foreign Investment in U.S. Existing-Home Sales Falls 27% to $54.4 Billion, Lowest Level in a Decade
From April 2020 through March 2021, foreign buyers purchased 107,000 properties, down 31% from the prior year, as the COVID-19 pandemic led to a strong global economic contraction and a decline in international tourist and business arrivals.