Chandler, Gilbert, & Phoenix AZ 2016 Real Estate Market Forecast
2015 was a wonderful year for the Phoenix real estate market. The appreciation of the properties in the Phoenix area increased by just a hair under 4%.
Let’s think back at the number of foreclosures the area had 4-5 years ago. These “boomerang buyers” (industry term for people who lost their homes to foreclosure that are now ready to buy again) were projected to flood back into the market in 2015, but this happened much less than was initially expected. The new projection is these buyers, with the increase in rental prices and their qualifications for a new mortgage, will begin to come full force back into the housing market over the next 3 years.
The biggest surprise was where the largest boost in the market came from: Millennials. They made up nearly 1/3 of the buyers at the end of 2015, and there is a projection that this number will only increase in 2016.
Pricing increases are projected to be 4.5%-5.5% in value over the next year. Inventory in 2016 is down 20% from that of 2015, and it is slowly becoming a seller’s market, especially with a population increase of 110,000 just last year. So, if another 10,000 families are interested in buying in 2016, expansion and building will need to continue to increase.