PHOENIX — Home prices in the Valley are skyrocketing. The big question: Is it another bubble?
“This is not a bubble. This is not gonna all of a sudden pop,” said Mark Stapp, the director of W.P. Carey School of Business's real estate program.
According to Stapp, there are strong market fundamentals in place, hence is the belief that prices will continue to go up. Others in the industry agree.
“There's a high influx of people coming into the Valley," said Dorrie Sauerzopf, the lead listing agent for Homie. "We have a lot of high-paying jobs, affordability.”
Ben Campbell, the morning personality on 102.5 KNIX, recently sold his house. He said it was a feeding frenzy.
“We put it on the market on a Friday. And the first day we had 10 offers. People were lining up around the block,” he said.
The next day brought more of the same, including plenty of cash offers. So, if you don’t have cash, be sure to get pre-approved and offer the listing price or better.
“We got $25,000 over the listed price,” Campbell said.
He further increased his profit margin by using Homie, an online brokerage firm that takes less of a cut than traditional agents.
As for those making the offers, “You’re going to go, ‘Am I buying at the top of the marketplace’? I think you pick the right neighborhood, you pick the right house, you do it now," Stapp said.
Realtor.com projects Phoenix home prices to increase seven percent in 2021.
A silver lining for buyers, interest rates are at a "record low," Sauerzopf said. In turn, your mortgage may also be at a record low.