Metro Phoenix housing market could indicate economic recovery
PHOENIX — Prospects of a coronavirus vaccine are sending the markets up, and metro Phoenix’s red-hot housing market could be another sign of economic recovery.
Homes are selling in 12 days on average in this market.
“I don’t think we can make strong statements about the housing market spreading to a broader economic recovery yet,” Zillow senior economist Chris Glynn said.
“I don’t think it’s appropriate to say that, because housing is hot, this is a sign that the economy is recovering.”
He admits buyers still have income to grab homes especially with low interest rates.
“Housing is connected to that, but for economic recovery, it’s really about the jobs story,” Glynn said.
Jobs in industries like construction are stable; meanwhile, some jobs that were cut at the start of the pandemic have returned while others will not.
In metro Phoenix, homes that sell above list price rake in an extra $11,000 for sellers, on average.
That can be credited to low interest rates, a 21.5% drop in inventory in the past month and strong buyer demand.
Glynn found homes priced between $251,000 and $307,000 went above list more often.
“There’s a lot of demand from people who are currently either renting or living with family, but looking to enter homeownership,” Glynn said.
He tells new buyers to aim for homes under their budget, in case they get into bidding wars.