The coronavirus pandemic has created uncertainty in several aspects of life as we know it. To move forward, Phoenicians have had to adapt to conditions and make significant changes to how we work, live, and interact with one another. While our daily lives may look different, real estate prices have remained competitive in and around Maricopa County. Simply put, demand remains high in the Phoenix housing market.
Possible New Construction Housing Lotteries
New construction projects are underway throughout Maricopa County, and area builders are reportedly scarcely keeping up with demand. The record-low mortgage lending rates may be the reason why so many buyers are vying for new construction homes in this market.? There are homebuilders with waiting lists and, according to one report, demand is so great that some developers are considering using a lottery system to select buyers. Recently, Scottsdale-based Taylor Morrison Home Corp reportedly released a limited number of homesites in its Tierra Montana community in Laveen, Arizona, through a virtual drawing. The homebuilder reports that it has had positive feedback from buyers and participants using the system so far.
Housing Data Predictions for Phoenix
According to a recent report, data from the CoreLogic Home Price Index and HPI Forecast showed that nationally, home prices increased by 4.9% in June of 2020 when compared with data from June of last year. This same information reflected that home prices increased 1% compared with data from May of 2020 and that this was the fastest monthly gain for the month of June since 2013. Economists at CoreLogic are predicting that there will be a nationwide price decline over the next year. However, this prediction is not the same for Phoenix.
When analyzing Phoenix, CoreLogic’s chief economist, Frank Nothaf, found that the area’s increased population growth and housing demand resulted in different findings. Nothaf stated that ?[valley] home prices were up 8.7% in the 12 months through June 2020.?? He also said that ?with available housing in relatively short supply, home prices and rents have both risen strongly over the last year.?
Low Supply, a Seller?s Market, and Low Interests Rates
According to a recent article, housing analysts expect Phoenix’s real estate market to remain steady. Many cite factors such as record-low mortgage rates, projected employment growth, and population expansion, contributing to Phoenix’s housing market stability.
Laura B. Bramnick is an Arizona real estate attorney with the knowledge and experience you need to protect your interests during every stage of your real estate matter. If you are seeking an exceptional, client-driven real estate lawyer in Scottsdale, Phoenix, Sedona, and throughout the State of Arizona, contact Laura B. Bramnick to schedule your consultation.