Being the best real estate brokerage in Phoenix means you can’t rest on your laurels. At Tru Realty, we stay abreast of real estate trends and market conditions. Our brokers and agents work to provide the very best customer service in the market. That starts with knowing our business and ends with a great experience for our clients.
Based on what I’m reading, hearing and seeing, here are some predictions for the real estate market in 2020.
The Fed’s push for quantitative easing (QE) is really a band-aid approach to keeping the economy healthy but it’s also brought higher interest rates, relatively speaking. As of mid-December, 2019 rates were as high as 3.99%, which is still a really good rate. As the Fed pulls back on QE we are going to see the economy ease toward a recession. If that happens we will see interest rates fall again to record lows – probably close to where they were in 2012. With some of the lowest rates in history as well as low unemployment, solid wage growth and a stable GDP, we should have a strong real estate market in 2020.
Maricopa County continues to be one of the strongest and fastest-growing counties in the United States. We most certainly will continue to see new homes continue being built through 2020. The need for starter homes is increasing as the millennial generation is finally starting to buy homes. Because of this, Phoenix’s West Valley will continue to be at the forefront of growth. Many of the larger builders like Meritage Homes have been making strides over the last decade to build more affordable homes for first-time homeowners and Buckeye has become the fast-growing municipality in Arizona at this time.
The current need for affordable housing is paramount. I think we are going to see more private companies getting creative to help solve the affordable housing issue. We’re already starting to see some interesting things happening with shipping containers, tiny home communities, and neighborhoods built specifically for people with disabilities. The Phoenix market has always been a hotbed for housing innovation and will continue to be in the future.
Lastly, we have seen a huge influx of venture capital in the real estate space over the last few years. As 2020 stays strong, I predict we will continue to see more money coming into the market. The iBuyers like Opendoor, Offerpad, and Knock will most likely see another round of funding. Newer AI models, virtual guided tours, and new buying and leasing platforms will continue to flourish. There will be no shortage of new proptech companies coming into the real estate space either.
These are all factors that will add value to what Tru Realty is doing as a brokerage and encourage our goals for the next decade. It’s our objective to remain an industry leader and use our foresight to make certain our constituents, both internal and external, benefit as much as possible. Looking forward to a strong 2020 for Tru Realty!
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.