For months on end, Phoenix metropolitan home prices have shown no signs of slowing. With Phoenix rising as a popular affordable destination for out-of-state homebuyers, it’s no wonder its growth has accelerated. But how long is this growth going to last?
Supply Chain Troubles
Although many developers have come to Phoenix with big plans and aggressive timelines, the nationwide supply chain crisis threatens to slow these efforts. In addition, the appearance of the Omicron variant could cause further strain if international supply chains are affected. However, the impact of these factors won’t be clear for some time and may not significantly hamper housing efforts after all.
Slow Wage Growth
With average national wages seeing little change, housing prices will not be able to continue to grow as it has. As the availability of affordable homes dwindle while homebuyer demand increases, the prices will eventually need to match the needs of of average homebuyers. Coincidentally, October and November statistics show homes spending more time on the market which could indicate this shift has begun.
Local Experts Weigh In
According to local economists, this growth trend could fall off in the coming year. Phoenix home prices have shown a slight decline in recent months, which may become a pattern as we move into the new year. Furthermore, with Phoenix’s stellar year-over-year gain, it’s been theorized that the following year is unlikely to be so strong. However, any decline in housing prices won’t occur over night.
If you need an ally in this challenging housing climate, give me a call at 480-355-8645! With my experience and insight into the current market, I can help you every step of the way. And, as always, you may check our current listings if you’d like to see what’s on the market or are simply just curious.
