When people see you as a leader in the real estate community, it’s common to get asked about the state of the market. I would be a multi-billionaire ten times over if I had a dollar for every time I hear…
How is the housing market? How is Arizona doing? Are we in a bubble? Is this spike in home values and sales going to continue? Are you worried?
That said, I’m still compelled to whip out the crystal ball from my back pocket and share my thoughts on the matter, so here goes.
The State of The Real Estate Market
Selling agents are running around town writing offer after offer while listing agents have completely lost track of the number of offers coming their way. Not to mention what seems like overpriced homes that are surprisingly appraising.
I do not believe we’re in a bubble. I think we have a unique amalgamation of occurrences that have led us here.
A Product of Circumstance
First, there were fewer home listings than normal in the past twelve months because of Covid-19 fears. Let’s face it, no one wanted a bunch of random people walking through their house during a global pandemic.
Second, supply is being forced down because the government’s mortgage forbearance program sharply reduced home foreclosure sales. Couple that with millennials being the largest population of home buyers, and demand went through the roof!
It was the perfect storm and Arizona was one of the epicenters.
As of the end of April, we had pricing up 33% year over year and inventory down around 50% year over year with an absorption rate of less than ONE. Never in the history of Arizona have we seen numbers like this, and I think it’s going to continue for the unforeseeable future.
Nothing stays the same in Real Estate, change is inevitable.
My hope over the next year is that we see pricing level-off and inventory rise a little. Arizona is very insulated from the rest of the country with Maricopa County being one of the fastest-growing counties in the country.
As the CEO of a quickly growing brokerage, my number one goal is to keep my agents and my clients happy. If that means hiring therapists for my agents, I’ll do it.
We need to hang in there and realize the bottom is not falling out. This is the new market; Think of Arizona as the new NYC or San Francisco. Sellers are having their day in the sun getting the pricing they want and seeing huge equity plays because of it.
Looking to partner with a brokerage that’s willing to pay for therapy? Schedule an introduction.
Sarah C. Richardson is one of the preeminent leaders of residential real estate in Arizona. As the CEO and founder of Tru Realty, she is responsible for both the daily operations and oversight of the multiple growth strategies that the brokerage carries out. Sarah launched Tru Realty in 2010 as a way to serve a marketplace that was seeing a shift from auction-centric fix/flips to an MLS flow. She is now rethinking the way her brokerage uses technology to better serve clients and agents alike.