Phoenix housing market booms as demand rises and supply falls

The Phoenix area real estate market is red-hot right now. Supply is low, demand is high. It’s a great market for sellers, but not so much for buyers. We got the latest from Catherine Reagor, who covers real estate at The Arizona Republic.

According to Reagor, houses are selling very fast. Sometimes, within a day or before the for sale sign goes up. However, on the other end, it’s not a fun time. “If you are a buyer, it’s tough times. Particularly, if you’re a first-time buyer and you’re caught in bidding wars on almost every house under $600,000,” Reagor said.

The city of Tucson is also seeing this similar housing market type, but Phoenix is one of the hottest in the country. “The housing markets in other parts of the country that are relatively affordable and are drawing these population growth numbers and new residents are seeing it, but metro Phoenix is one of the strongest markets in the country,” Reagor said.

Prices for houses in Phoenix have also gone up. The hottest price sector used to be the $200,000 to $250,000 range, but according to Reagor, you can’t really find a home for that price. The median price for a house in Phoenix is now $345,000, which is the hottest price sector now.

There’s been a shift in areas that are popular in Phoenix. According to Reagor, areas like Central Phoenix and Arcadia have become too pricy and are now being snubbed for farther out areas with better deals. “Phoenix is doing really well and parts of the West Vally are doing really well too,” Reagor said.

The market for condos is also hot. According to Reagor, bidding wars are happening on condos too. “Overall, it’s more affordable and that’s the best way for first-time buyers to get in,” Reagor said.