PHOENIX (3TV/CBS 5) -- Take a look around, and it appears the housing market in the Phoenix area is still steady. But many real estate professionals say the pandemic has actually brought a change the Phoenix market has been needing.
“In the overall market itself, it's really kind of doing what we needed it to do," Lance Billingsley told 3 On Your Side. “We are at a point of re-setting the market."
Billingsley is a realtor with The Laughton Team. He says before the coronavirus, there were just 10,000 homes available for sale in the area. With few houses on the market, that kept some buyers out of reach.
“Before COVID-19 hit, we were at record low levels of 10,000 houses in a city that has 7 million people in it. Ten thousand is a shrunken market," he said. But since the pandemic, the number of homes has jumped to more than 14,000 available for sale.
We're headed in the right direction because Billingsley says a stable housing market should have an inventory of between 20,000 to 25,000 available. That could be good news for buyers.
“What a buyer knows is that the seller is serious. They have to sell. I mean, who wants to sell when there's a pandemic going on."
Median prices have been rapidly increasing over the years. According to Billingsley, the median price in and around Phoenix was $255,000 back in April of 2018. Last year it jumped to just over $267,500. And last month, it was just under $299,400.
But with more homes for sale, prices are expected to stabilize. “It's still a seller's market. Let's not be confused by that. But in a month, the leverage has very much changed to the other team," he said.
What's interesting is although there are more houses for sale on the market, homes are being shown through virtual tours instead of in-home tours due to the pandemic.