All around the Valley of the Sun, median home prices have jumped to their highest levels since 2009. Tempe, Arizona, specifically, is in the middle of an economic boom. With multi-national corporations like Shutterfly and State Farm moving in and expanding to the once small college town, it’s time for long standing Tempe home owners to sell your home and cash in on real estate investments.
Business is booming in Tempe AZ
Businesses like Shutterfly, State Farm, and GoDaddy are either expanding or moving into Tempe, bringing thousands of local jobs to the area. Apple and Northern Trust are also expected to be hiring over 1,000 people each for their East Valley locations. All this means that the East Valley and Tempe areas are in an economic boom and with that, it is expected that more and more people will be moving to the East Valley. As such, median home prices have reached their highest levels since 2009.
Tempe may be booming now, but not for long.
It may seem counterintuitive to move out of an area that is prospering like Tempe, but as a real estate investor, you want to leave a market when the iron is hot. Other than 2008, the average price per square foot for a home has never been this high. Without mortgage companies inflating the market this time around, it’s hard to envision the average price going up much higher. According to the Arizona Republic, home prices are beginning to flatten out, which is scaring away investors. This could cause a drop in pricing as demand may drop once all the new job expansion has settled down
The national economy is still uncertain.
You know what’s bad for the economy? New presidents. Specifically after the previous president served 2 terms. Reagan, Bush 1, Bush 2, and Obama either inherited economic hardships, or the economy faltered shortly after their taking office. Bad economies naturally equal bad home selling markets as fewer people have the finances available to purchase a new home. As a new president will be set to take office in 2017, the economy could also be changing from a bull to a bear, causing the recent trend of higher home prices to drop.
Risk VS Reward: Sell Your Home in Tempe
Although higher home pricing trends may continue upward for another year or so, it’s doubtful that prices may reach levels where getting out now would seem like bad investment strategy. As long as you didn’t buy a house in Tempe between 2006-2009, you’re making money on your investment. Hanging on for another year could be risky. Businesses have already made their commitments towards expansion and the light rail has pied pipered whatever business it was going to attract. ASU has also finished the majority of their Tempe campus expansion plans, eyeing further projects in Phoenix and the West Valley. All this points to a slowdown in Tempe development. If the things that naturally attract home buyers to Tempe are beginning to show signs of flattening out, then now could be an optimal and safe time to sell your home and leave the market.
If you are looking to sell your home and don’t know where to start, Century 21 Northwest offers a free home evaluation. For more information click here.