Housing Market Shows Continued Signs of Consumer Confidence
The Arizona Real Estate market mirrors the majority of the nation with a record year so far in 2017. azCentral.com reports that barring the boom and bust years, 2005 & 20011, Arizona’s housing market is the best it’s ever been. As a matter of fact, even though each of those years was more active, the robust 2017 market is far healthier overall.
Not including the Active Adult Real Estate market, Fall sales in Arizona customarily drop off gradually toward the holidays when movement comes to a virtual hault, regaining momentum sometime around the end of January. True, there has been a slowing in sales over the past two weeks, but not nearly to the extent of past years. Arizona boasts a healthy number of Active Adult communities and retirees return to the warmer climate in Winter giving us a much needed shot-in-the-arm for the Phoenix Valley’s 4th quarter market. It would appear that this year is no exception. On the other end of the spectrum, Millennials have shown a renewed confidence in the market, owning somewhat to a fairly hearty jobs market in our state.
Confidence in housing nation-wide doubled back in August toward an all-time high as sited in the Fannie Mae Home Purchase Sentiment Index® (HPSI), with home sellers’ optimism rebounding from July. The HPSI overall posted 88.0 in August, 1.2 percentage points higher than the month prior and moving toward the Index’s record high, reached for the second time in June.
The share of home buyers surveyed for the Index who believe now is a good time to buy fell five percentage points to 18 percent, but the share of sellers surveyed who believe now is a good time to sell rose eight percentage points to 36 percent. The discrepancy is predominantly due to home prices, says Doug Duncan, chief economist and senior vice president at Fannie Mae. Forty-eight percent of both homebuyers and home sellers surveyed anticipate home prices will rise.
“In the early stages of the economic expansion, home-selling sentiment trailed home-buying sentiment by a significant margin,” Duncan says. “The reverse is true today. The net good time to sell share is now double the net good time to buy share, with record high percentages of consumers citing home prices as the primary reason for both perceptions. Such a sizable gap between selling and buying sentiment, if it persists, could weigh on the housing market through the rest of the year.”