Hello fellow home owners, Ray Cutler, Realtor and Real Estate investment counselor in the greater Phoenix area. If you’ve been following the greater Phoenix Real Estate market for the past 3-4 years, you already know several things:
It’s still going:)
Many of my recent calls have been from home owners like you who are wanting to know specifics:
1) Is it a sellers-market
2) What’s my home worth?
3) How long will prices continue to go up?
The answers are:
1) Is it a sellers-market? Yes!,
2) What’s my home worth? Depends on where your home’s location and its amenities (I can do that analysis after you tell me your address:)
3) How long will home prices continue to rise? The short answer to that last question is the current market stats are what’s called “trailing indicators” of price appreciation, This means we should have another 1-2 years of predictable appreciation (as long as nothing extraordinary occurs, like a significant global event, or a major change to the tax code that greatly impacts Real Estate). The most recent tax changes, although somewhat impactful to very expensive homes, do not appear to be a big factor for Phoenix. This is due, in part to changes in the recently passed tax plan that were influenced by your local and national real estate associations:)
So, is it a good time to sell? Absolutely, however you might first want to ask yourselves several additional questions. Why am I looking to move? New home look and feel? Geographic change due to job, or personal choice? Downsizing to a smaller home? Do I ever envision coming back to this area? If yes, could I rent my current home for more than my current house payment and utilities?
There is a significant shortage of available homes in the valley. Home prices and rents are all up considerably because of this shortage.
Things that might impact the ongoing appreciation trend include a significant downturn in the national economy or an unexpected, significant increase in inventories.
On this note, I read recently that new home building forecasts are up, and that builders may be focusing on lower priced, entry level homes. For Phoenix, this would be a change in new build behavior. However, the economy looks good, and builders make up a relatively small % of total available inventory.
If you are considering selling, for whatever reason, I suggest you consider renting your home for more than its monthly costs. There still can be significant tax advantages to this strategy and a quick visit to your accountant could be a profitable one (ask about pass through income).