PHOENIX — Arizona's housing market is one of the hottest in the country.
Prices in the Valley area have gone up and up over the last couple of years as investors and new residents have bought up properties.
However, after years of a strong seller market, some wonder if a crash may be around the corner.
It's been more than 15 years since the housing crash in 2007 and 2008.
Interest rates are on the rise, and prices have been increasing across the country for a couple of years. However, experts believe the economic situation is quite different from the Great Recession.
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“It’s actually quite the opposite. Experts are predicting a 15% to 25% increase over the next ten months in 2022,” according to Jeremy Fierstein, a realtor with West USA Realty. “The problem is we still don’t have the inventory, and we have a lot of people and investors looking to move to Arizona.”
The biggest difference is the high demand does not meet the available supply.
According to the Cromford Report, which analyzes the real estate market, demand is about 17% above normal for this time of year, while supply is down 75%.
“This month alone we have 5.9% fewer homes available than we did this time last year,” Trevor Halpern with Halpern Residential at North&Co explained.
Halpern also expects another year of increasing prices unless there is a crash in some other major part of the economy.
“Unless a lot of people are losing their jobs, unless the air gets let out of our marketplace, I think we are going to be pretty insulated from this,” Halpern said.
“We are really in a position where buyers have to wait for this thing through,” Fierstein said.
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