I have worked with a handful of people over the years that ended up not buying because they thought that there would be a pull back on home prices and they wanted to wait for a better deal. Well, some of those people are still waiting, and some have been priced out of the market all together and home ownership is no longer an option for them.
Just because prices have gone up, does not mean homes are overpriced. If you compare where our prices were a year ago, or a few years ago, sure they higher…but if you compare Phoenix to other parts of the country, you will find that homes are priced near or above where they are here in Phoenix. Ask Californians what kind of home they can get in California for $500,000…In some parts of Phoenix $500,000 could get you your dream home! This makes me recall an article I read this past week with the headline “Metro Phoenix Real Estate is at the top of the Hill, with no end in sight”
If you are one of the people who think there is a price decline coming, I ask you to reconsider. Phoenix has great weather, and a wonderful economy attracting nearly 100,000 new people a year. We have very business friendly tax laws attracting large companies wanting to expand their operations or relocate. We now have an established tech sector and are also one of just of 13 cities in the country with a professional sports team in the major sports league.
It goes without saying that past or current success is not a guarantee of future success…however, with all of the above-mentioned factors, which ones make you believe this market is not going to continue to grow? I have no idea how long this trend is going to last, but like the headline of the article, I agree, there’s “no end in sight”.