Nationally homes prices appreciated 13 percent while in Phoenix, Arizona they were up, but at a considerably lower rate of 6 percent. That compares to 28 percent last May.
RealtyTrac Vice President Daren Blomquist says while it may not sound like it, that’s actually good news for most Phoenix residents, because the higher rate is not sustainable. The lower appreciation rate will mean the certain Sellers will have to wait longer to regain equity in their homes. However, an alternative to selling your home would be to rent it out so that you can move on if you lifestyle or family situation has changed.
Bloomquist stated ““That would just be creating another bubble in the housing market. So I think that this is expected and it’s actually, it’s probably not good news for everybody in the market but it is good news for the overall market,"
In the next six months, Blomquist says home price appreciation in the Phoenix area will likely flatten out in the 6 percent to 10 percent range, a pace he says can be sustained over the long haul. This is mainly due to the lower sales rate and higher inventory of available homes currently listed for sale. Buyers currently have the advantage of more choices and better negotiation on price and terms.
RealtyTrac says the median price of a home in Phoenix last month was $180,000, with the median price of a distressed home at $144,000.
For more information regarding homes values and your local real estate market, please contact The McKinley Group at RE/MAX Masters, 480-355-8645 as we look forward to helping you achieve your real estate dreams.