The Mark Gunning Team: Phoenix Real Estate is Finally on Solid Ground

Well after one heck of a roller coaster ride which started in 2007, the Phoenix real estate market is now appearing to finally be on solid ground.

Realtor.com reported that Phoenix home prices increased by 5.3% in September 2015 which was the 10^th straight month of home value increases. And was strongest among the 20 metro areas they surveyed.

“It is clear that prices are rising in most areas at above average rates due to the limited supply and strong demand the real estate market has seen all year,” said Jonathan Smoke, the chief economist for realtor.com®.

“But with higher values, more existing owners could be encouraged to sell in future months,” he said. For 38 straight months, the inventory of existing homes has remained below a 6-month supply, according to the latest report from the National Association of Realtors. Read more…

The Phoenix commercial real estate market is also going up and on solid ground according to a story on KTAR’s blog.

“Ninety percent of the respondents say that we are in an expansion mode,” Mark Stapp, director of the Master of Real Estate Development Program at the W.P. Carey School, said.
“That’s up from 58 percent six months ago, so I think that’s very good. When asked in what direction Phoenix is moving, 100 percent of them said ‘upward.’

Stapp said an increase in building and selling of commercial inventory that had been on the market for a while fueled the optimistic responses. Read the rest…

Even the Phoenix area apartment real estate developers are rocking and rolling with 7,200 new units hitting the Phoenix market this year and another 22,200 have been slated for construction.

The Phoenix Business Journal is reporting that most of the cranes you can see around construction sites in Phoenix, Scottsdale, Chandler and Gilbert are for new apartments and condos.

There are fewer new office projects but plenty of development plans for apartments in a local market that’s already delivered 11,500 new units since 2014.

Are there enough tenants to fill those units? Or is Phoenix headed for another one of its rounds of real estate over exuberance and speculation and another bubble?

Tyler Anderson, vice chairman of capital markets and a multifamily expert with the CBRE real estate firm, doesn’t think so. Read more here…

As long as the economy stays the way it is or increases, Phoenix should see a continued steady increase in home values for years to come.

Are you ready to buy that new home? Start preparing now before prices increase and push up your monthly payments.

We offer a free home buying strategy session to make sure you have everything you need to find and purchase the home of your dreams,

Contact Mark & the Team today.

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