When it comes to real estate markets we tend to look for signs as a way to move past our uncertainty and make a smart decision.
More than eight years after the bottom fell out of the real estate market in Arizona sales and home prices are bouncing back but will that momentum continue when Donald Trump takes the oath of office in January?
It’s tempting to look to the past for guidance, but human nature in 2016 has proved to be unpredictable.
Tucson Association of Realtors President Eric Gibbs says in election years, especially 2000 and 2008, when the economy was shaky at best, most people chose to wait out the election before buying a home.
“I those years we did see a bit of a slowdown in people, during those election periods because there was such an uncertainty,” said Gibbs.
But now, count one more way 2016 is a year like no other, “If you're looking at the market and seeing how people are buying you don’t really see that caution,” explained Gibbs.
In the weeks leading up to the presidential election the value of homes sold in Tucson continued to climb: more than eight percent higher than October 2015.
Economists point to increasing confidence in the post-recession market helped by new bank rules to make sure people can't qualify for loans they can’t afford.
Homes priced between $160,000 and $300,000 are selling fastest according to figures released this month. Gibbs calls it an indication first time homebuyers are buying, selling, and then buying bigger homes.
So what will come in 2017?
“I think we’re going to continue to grow,” Gibbs said. “I wouldn't be surprised if we didn’t see another year over year growth because of jobs coming into the market.”
He says northwest Tucson, Oro Valley and Marana comprise the hottest sales area; people are attracted to newer construction and proximity to Interstate 10.
Numbers how the part of the state with an enticing seller’s market: Flagstaff due to a lack of existing homes and restrictions on growth.
He says people considering buying a house for the first time or moving from their existing home contact a lender to learn how much they can afford and comfortably pay.
