Real estate prices have gone up 25% in one year in many parts of the US including the Phoenix Arizona metro area. Is this normal and can it be expected to continue? The answer is NO.
Real estate prices have their Ups and Downs. However for the past century the overall trend is always UP. The US way of conducting life and business has changed recently with the events and business shutdowns of 2020. My businesss is real estate and it is certainly affected what I am seeing compared to the last year.
We all have heard that certain types of industries are economic downturn or depression resitant.
For years industries resistant to downturns have been:
3. Gasoline (people need to get to work)
4. Clothing (people need to wear clothes)
5. Personal hygiene and beauty projects (people try to look good even when times are bad)
People need these goods and services even during a downturn. Economic turn downs caused by world events are one type of downturn. The recent pandemic was another type. Real estate is a commodity that people do need, it is not an option (like a piece of clothing or a new telephone), we have to live somewhere.
Real Estate Pandemic Resistant Industry in Arizona
Phoenix Arizona Metro area Home prices reached their highest ever average selling prices in 2021 with the average 3 bedroom, 2 bathroom with a garage home selling for about $400K (depending on location).
People need to live somewhere (Real Estate) so when the economy is bad people are still pretty much living indoors out of the elements. However prices have fluctuated. For recently, example in San Francisco rents are dropping as they are in New York as people are fleeing densely populated cities for the lure of the suburbs and the wide open spaces like Arizona. Cities like my city in the Phoenix metro are drawing new residents to the tune of about 6,000 new residents per month with half of those coming from California.
People are seeking more suburban Phoenix metro area living and the wide open spaces that Arizona offers with day trips to the Grand Canyon or the higher pine tree and lake destinations of Flagstaff, Prescott, Show Low and Lakeside-Pinetop not to mention the wine country near Lake Patagonia in Southern Arizona. As a result new building is continuing and home prices and rents are on the rise. This in my local market seem to indicate that Real Estate was Pandemic Resistant due to the circumstances. Of course if you live in New York or San Francisco a Realtor may feel differently.
Several of my last sales were to Californians and New York metro individuals fleeing those environments and it appears that recent trend is continuning.
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For, the largest metro area in the state, here are all single family all detached homes for sale in the Phoenix Arizona MLS.
If you are looking to move to Phoenix including Scottsdale or other areas of Arizona to buy a home in Arizona or sell a home in Arizona, contact Jeffrey Masich, Associate Broker and REALTOR®. I would be pleased to help you and look out for your best interests while finding you the right home at the right price!
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