Arizona Housing Market Predictions

Let's take a look at the Arizona housing market and what you can expect from it in the coming year.

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Housing markets can be unpredictable.

One year, it's a buyer's market. The next, it could be a seller's market. One thing that's guaranteed about the property is that nothing is guaranteed.

While you can never definitively know how a housing market is going to go, you can certainly make confident predictions.

Arizona Real Estate Market

In Phoenix, if 2017 is anything to go by, 2018 has a lot to live up to when it comes to the Arizona housing market.

Catherine Reagor of AZ Central explains that 2017 was one of metro Phoenix's best years regarding property and home sales.

The number of homes that were sold and exchanged hands in 2017 was up by an astounding 6 percent in 2017 from 2016. 2011 was the last year that even held a candle to 2017. This means that it's been seven years since Arizona saw such incredible house sale figures in the Phoenix metro area.

To get to peak levels, you have to go back even further than 2011 and 2010 all the way back to 2006. While 2017 is a record year, it still isn't as good as the number of homes being sold in 2006.

So, what should you expect for 2018 in metro Phoenix? Mark Stapp is executive director of the Master of Real Estate Development Program. He believes that 2018 is looking to continue and be much like 2017 was.

However, he goes on to explain that a hike in rates could work against this positive outlook and become a potential setback to the market.

What to Expect in the Arizona Housing Market

Catherine continues by saying that most analysts of housing don't feel comfortable making predictions annually about the housing market – it could all change in a second.

Naturally, nobody wants the finger pointed at them when their prediction is wrong. The national real estate website for Phoenix, Arizona did predict 2017's successes, so this is an example of a projection paying off.

Ruff, a Valley housing market expert, is concerned that there's not enough affordable housing which could potentially predict a seller's market. The challenge here is for Arizona to build houses that people can afford. This is because there's no way that the prices can keep climbing, while current affordable homes are low in stock.

Valley housing market expert Tamboer says that she wouldn't be surprised if there were a softening of appreciation in 2018. While she does have the belief that house prices could keep climbing this year, she doesn't think the rate at which they do will reflect the past two years.

The area has a lot to live up to. The average house price has to climb by 6 percent just in the next year for the Arizona housing market to fully recover from the crash.

What You Should Know About Arizona Real Estate

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Katie Conner of ABC 15 says that experts are predicting a rise in the housing market for Arizona.

Jeff Sibbach of Realty One Group is placing his predictions with an increase in value. He believes that this will be in the form of a steady rise, similar to what was experienced in the early 1990's.

The shortage of affordable housing remains an issue in the Arizona housing market. According to Jeff, the supply of affordable housing available is off by about 12 percent. This is when you compare it to the same time frame in 2016.

Because there is a decrease in the supply of house available for purchase, the prediction is confidently a steady rise. It's set to be an up-moving housing market because demand is up by 7 percent also.

While this paints a picture that indicates it's going to be a competitive market, it's also potentially a good time to buy before the market starts to sizzle.

Chandler and Goodyear are two of the most sought-after areas currently in Arizona for a property. This is due to there being a good amount of baby boomers that are looking to downsize and find something to settle into comfortably for the long haul.

Buying Arizona Real Estate

Real estate predictions can be unreliable. One day they can be sure of one thing, then move on to something else the next.

Arizona's housing market has had a good run this past year. There are some interesting factors to consider as you look at the year ahead. Whether you're looking to buy or sell in the Arizona housing market, it's helpful to get a rough idea of what the experts think will happen.

One thing's for sure – nothing is guaranteed.