By Shelley Sakala
Hello, North Phoenix homeowners! If you’ve been keeping tabs on the housing market, you’re probably well aware of the hot prices that homes in our area have been commanding lately. As a real estate agent that specializes in our area, I keep my finger on the pulse of our community. So, I want to shed some light on the factors that have been driving the surge in home values from Norterra to Anthem.
First things first, did you know that we’re currently facing a shortage of around 120,000 homes in the Valley? Yes, you read that right. It’s a staggering 6.5% of the existing inventory as of 2022. But why does this shortage matter, and how did we find ourselves in this situation in the first place?
Let’s break it down.
The shortage of homes is a major player behind the consistently high home prices in the Valley, which of course includes North Phoenix. Despite occasional periods of slower sales and higher interest rates, the demand for housing has remained strong, far outpacing the available supply.
So, how did we end up in this predicament?
Well, following the housing crash of 2008, home and apartment construction nearly ground to a halt. It wasn’t until around 2016 that construction began to pick up again, only to slow down in the subsequent years. By then, however, the Valley had already become a magnet for those seeking a new place to call home. With nearly 300 people moving to Maricopa County, every single day, the demand for housing skyrocketed.
When construction finally started to gain momentum around 2019, the demand had already far surpassed the available supply, leading to a surge in home prices. Basically, we were playing catch-up from the get-go.
Now, here we are today, witnessing a boom in apartment construction. Despite efforts to address the supply issue in recent years, the shortage of homes has barely budged since 2020.
This shortage isn’t just a minor inconvenience—it directly impacts homebuyers and the overall real estate market. And as demand continues to surge and construction efforts ramp up, it’ll be fascinating to see how this dynamic plays out in the coming years.
But no need to worry, North Phoenix homeowners. While higher home prices may be here to stay, we’re still more affordable compared to major metropolitan areas like New York, LA, or San Francisco. Plus, with our burgeoning tech and healthcare sectors and a thriving cultural scene, the Valley has never been more enticing. And at the end of the day, higher home prices mean more equity in your pocket!
Shelley Sakala is a local realtor and owner of The Sakala Group Real Estate.
