If you’re a homeowner or potential home buyer in the Valley, you’ve probably been keeping a hopeful eye on the housing market. Rightfully so; many were deeply affected by the crash the occurred in 2006. While the climb back has been a long one, it seems the Phoenix housing market is not only recovering, but flourishing.
What do I need to know about Phoenix housing market?
The Valley has come a long way since the hit the market took back in 2007. Homeowners have watched the climb for a little over a decade, and are finally seeing median prices that exceed those that occurred before the bubble burst. The numbers speak for themselves: we saw a median price of $268,000 set in this past June, which even surpasses the record of $265,000 that was set in June of 2006. While many may be cautious in their optimism of the current market, many are saying that even with the struggles of the not so distant past, we are looking at not only a healthy rise in the market, but one that doesn’t forecast a large drop in home values in the near future.
Rebounding from the housing market crash
Looking at the struggle many homeowners suffered during the climb up from the crash, it isn’t had to imagine why some might feel doubtful in similar territory. The number of foreclosures skyrocketed, and many were left paying mortgages that were worth far more than their homes were worth. This in hand with investors swooping up those foreclosed properties for much lower median costs made it appear that the market would take years to recover – up to 25 years, to be specific.
12 years later, however, it appears that we are on the upswing in the Metro Phoenix area. Foreclosures are down significantly, and less that 5% of homeowners are paying more than their home is worth. This along with a healthy market rise, rather than the boom we saw in 2006, has many analysts feeling more than confident in the Phoenix housing market recovery.
Big opportunities for Metro Phoenix homeowners
Many Phoenix homeowners might see the numbers rising and be bracing themselves for the imminent crash. Still, experts are insistent that the market forecast does not indicate anything of that nature. While prices might dip slightly over the next year, they are more than likely expected to gain value slowly and then even out. This is good news for homeowners in this area, and even better news for those that are considering the idea of selling.
So what exactly does this mean for homeowners in the Valley? With the market at its current value, and assuming the price of homes does flatten out by 2019, it means that homeowners will be holding onto equity. Homes in many Valley neighborhoods are seeing prices completely recovered, if not more so. That in hand with the multiple bids going in on affordable houses (under $400,000), seems to create the perfect opportunity for those that are looking to sell their homes.
The Phoenix housing market has come a long way in the past decade, succeeding in not only recovering from the market crash, but exceeding it. In the current climate, with housing prices at a record high, homeowners should definitely start doing their research. Phoenix is hot right now (in more ways than one), and people from all over are looking to get their foot in the door. Even if you are only playing with the idea of selling your home, it is definitely a good idea to get an idea of how much it’s current worth is. CENTURY21 Northwest agents are always in the know when it comes to the current climate of the Valley’s real estate market.
To see how much your home has increased in value, use our free home evaluation tool below, or contact one of our realtors today!