Over the past month, I’ve attended many holiday parties. Talking with party guests, once they find out I am a Realtor, the first thing they ask is, “When will this crazy market change?” or “Will there be another crash?!” My first response is usually, “Ah, if only I had a crystal ball!”
I don’t have that crystal ball, but I can tell them what I’ve learned. What I have found is that most economists are in agreement that there will probably be at least another three to five years of growth across the U.S. And although this year will end strong, our inventory still remains in very short supply all across the country. There are many factors impacting that, but key among them is the increased number of people entering the housing market.
According to Gary Nelson of Realty Executives and Arizona REALTORS 2022 president, although builders are responding to the demand and putting out more product, “the U.S. failed to adequately prepare for the Millennial generation entering the housing market and we are dreadfully low on inventory as a result.”
“Here in Arizona, as people move in and out of the area and we see more and more of the Baby Boomer generation retiring, our hope is that primary homes, investment properties and vacation homes will slowly enter the market.”
Also, adding to the mix are the influx of iBuyers (instant buyers), purchasing residential properties directly from private sellers, bypassing the professional Realtor, and often paying cash at a higher price than market value.
Eric Gibbs, Arizona REALTORS 2022 president-elect, says that these iBuyers will continue to be a threat in the coming year. He states, “iBuyers may drive up the prices in certain communities, making it difficult for some buyers to qualify for a loan.”
Determining where the real estate market is going from here can be difficult. In addition, some assumptions should be made, including that there is no unforeseen economic disaster in the next several years.
“The U.S. real estate market survived 9/11 and continues to weather the COVID-19 impacts,” said Nelson. “The only negative effect we have seen in real estate markets in the past 30 or so years is the Great Recession which lasted from 2007 through 2011.”
Personally, I continue to be optimistic. With the way things are going in this country, people continue moving from state to state. There will always be a demand. I look forward to the leveling of sales prices, increasing buyers’ ability to find and purchase their dream home.
Please reach out to me anytime if I can be of assistance to you!
~ Patti Crowley – Realty One Group – 480.286.6400