Summer Real Estate Sales Snapshot
With the 800-point dive that happened in the stock market earlier last month, rumors are spreading that the real estate market is leading us toward a housing downturn. Although these large point drops can affect real estate, I don’t believe we are anywhere near the same collapse as last recession.
“The short-term impact to housing is less likely to be as reactive. The impact of the last recession is fresh in our minds and can have a play in home buyer psychology. But barring weak fundamentals, housing tends to perform fairly well during recessions. Over-construction is largely what got us into trouble last recession, and we’ve experienced just the opposite since then.”
This rings true in Arizona, as we have a shortage in homes and a high demand. Construction companies are extremely cautious in their production to ensure they don’t overproduce. In addition, the Phoenix metro area has a shortage in construction workers, which is slowing down construction even further.
Metrostudy’s regional director for Arizona and Las Vegas markets, Ryan Brault, remarked:
“Phoenix region’s employment and subsequent population growth will sustain a very good housing market for the next several years, unless over-exuberance generates overbuilding once again.”
With the migration of California businesses, job opportunities increasing, and the slower production of homes, the Phoenix metro housing market may be sheltered from larger national economic issues.
If you’d like to know more about the housing market, feel free to give our office a call.