Arcadia and Biltmore Market Conditions

What an incredible start to the new year for our team at The Brokery. We have already facilitated more than 60 transactions for our clients totaling over $30,000,000 in a very competitive real estate market. We are extremely grateful for all of those clients who have put their trust in us to advocate on their behalf and help them beat the market. Our growing list of loyal clients has been humbling to say the least.

2018 continues to be another barn burner for the Phoenix market as inventory valleywide is critically low. There are only 17,394 homes currently for sale on the MLS. For perspective, there were approximately 48,000 homes for sale at the peak of the market in 2006-2007. Yes, that was 48,000 homes! Today’s market isn’t acting irrational, it is just a factor of supply/demand and ultra low interest rates. While interest rates will continue to rise, we may be short of supply for sometime as most homeowners have “strong” hands. By strong hands I mean that current homeowners are probably not willing to sell unless there is some compelling outside motivation to sell such as a job transfer or need for more space. It is hard for homeowners in today’s market to give up their lower price basis and then be able to find something comparable to what they have now on the back end if they did sell.

While Arcadia Proper isn’t following the low inventory trend, buyers are definitely having to fight for the limited new construction inventory in the neighborhood. A lot of new builds are being pre-sold before they even hit the market, while the “tweener” homes continue to be slow sellers. It is no secret that buyers want new and they are willing to pay for it.

In Arcadia Lite and Biltmore, low inventory and a renaissance of the area seems to be driving prices much higher. There are only 25 homes for sale in Arcadia Lite at the moment and none of those 25 are under $500,000. New developments are taking shape and younger buyers gravitating to the area are having trouble breaking into the market at these elevated prices. Regardless of the general market, Arcadia Lite will continue to push prices for years to come in my opinion.

As always, I’m here to provide value. If you have any questions or would like guidance in the market please do not hesitate to call or text me at 602-561-0445. Our doors are also open 7 days a week just north of LGO on 40th Street.

*All facts and figures are deemed reliable, but not guaranteed. MLS statistics as of March 11, 2018.