Many neighborhoods outside Phoenix suffered a volatile housing market after 2006, but the good news is that they are quickly coming back. The boom enjoyed in 2006 is being reflected in the current housing market, and the trend is expected to continue. This recovery is being fueled by millennials buying a home for the first time.
First Time Homebuyers Attracted to the Area
The zip codes around Phoenix are enjoying and increase in prices, where younger buyers can afford properties. Chandler, Arizona, for example, experienced a home increase of 6.1% last year. Realtors expect the climb to continue, and people are making the purchases. First time home buyers are offered enticing incentives to make a purchase, including lower interest rates or other bank-offered perks. Young couples are falling in love with the area, and are moving from rentals to homes around Phoenix.
A Spike in Prices Does Not Equal Unattainable
While the prices of the homes are rising, young people are still able to buy. The average home price in Chandler is $354,000, which millennials are finding affordable and attractive. This age group is moving toward home ownership in droves, as they are aging and are no longer interested in renting from someone else, or living under someone else’s rules. They are working in secure jobs, and are finding this lifetime investment to be a wise choice. Millennials are starting families and settling down into homes around the greater Phoenix area, helping to encourage a housing boom.
The Future of the Area
As young people continue to snag up the houses while they are still available, some real estate professionals predict a housing shortage. Prices continue to climb, but so do the ability of young people to buy with incentives and steady sources of income. In fact, some realtors report clients who scramble to place a bid on a house, only to find that the house has already sold. There is little time to think about a particular home, which could cause a housing bust in the future. However, as the main group of people making these purchases are young families with stable jobs, house sales should stagnate for a block of time. As with all other economic areas, the housing in the greater Phoenix area will continue to wax and wane. At this time, it is booming on the heels of young families who plan to stay.
