This is it folks! The shift is here. Sure, it’s merely statistical at this point, but there is a clear trend right now towards something different. Demand is declining and normal or slightly below normal in most of the Metro Phoenix cities.
Supply on the other hand is stubbornly resisting change. We have seen less than 1% increase over the last month. But hey! At least supply is no longer declining. Cities in the East Valley – Gilbert, Chandler, Mesa and Tempe are the ones to watch to see how the trend unfolds. These cities have been pounded with demand and are showing the biggest changes. That said, these cities also have maintained some of the lowest supply levels so “normal” is a ways off.
Many folks are biting their nails worried that this is 2005 all over again (really 2008 when the market crashed).There are definitely similarities but some big differences too. Check out the video for more details on where we are in the Phoenix real estate market, how this tracks to the 2005 market and what to expect in the months ahead.