2016 Phoenix housing market forecast looks promisingPosted: Updated:
The Valley's housing market has come a long way since the recession in 2008 and 2009, and it's expected to get even better.
The website Realtor.com has released a new report that lists the Phoenix area as having one of the hottest housing markets in 2016.
"A few years back, Phoenix was the poster child for the housing market crash," said realtor Shelley Sakala with Keller Williams Arizona Realty. "We really have rebounded from that, and our market is pretty balanced."
Realtor.com Chief Economist Jonathan Smoke is predicting a 20 percent jump in new Valley home sales, and a nice boost in home values.
The national forecast for home appreciation next year is around 3 percent, said Smoke, but the Phoenix area is expected to have a home value boost of 9.5 percent.
The forecast, however, for Valley home buyers, isn't as bright.
Phoenix homeowner Megan Hughes and her family are looking to buy a new home.
The experts say that they better do it soon
"If you're a buyer that's been struggling to find a home at right price point, it's going to be more challenging because prices will be up," Smoke said. "We are also forecasting mortgage interest costs will be up as well."
Valley real estate expert Susan Nicolson said that inventory of re-sale homes across the Valley is still low, giving buyers fewer homes to choose from.
It's a situation that is not expected to change anytime soon.
Nicolson said the sooner buyers sign on the dotted line, the more money they will likely save.
"If a seller is going to make a concession, it's going to be this time of year," Nicolson said. "They're saying, 'Gosh, I should work with this buyer because I may not see another one until after the holidays are over."'
According to Realtor.com, the expected boost in new home sales should also improve the Valley's economy by creating more jobs.
"Phoenix is definitely not a market that's cooling down," Smoke said.
Copyright 2015 KPHO/KTVK (KPHO Broadcasting Corporation). All rights reserved.