What’s driving today’s Phoenix real estate market? Everything

By Robert Joffe

Location. Location. Location. It’s the real estate mantra that drives the industry and it still proves to be the case in the Phoenix real estate market. I’ve been in the residential market for nearly 40 years – specializing in Arcadia, Paradise Valley, the Biltmore area and Scottsdale.

Right now, it’s an interesting market to be sure. Rising interest rates, mortgage hikes, inflation and a possible recession have altered the market and the behaviors of our residential buyers.

However, one thing remains true: Arizona continues to be a huge growth market and people want to live, work and raise a family here. It’s always been that way – good markets and bad – and remains so today.

While many folks and those choosing Arizona for their home come from all over the U.S. – the Midwest, the East Coast and California, I’ve been seeing an interesting trend. Many of the buyers of the luxury residential market are coming from the Pacific Northwest, especially Seattle.

They are seeking sunny skies, a stable economy and a safe place to raise their families. Surely, there are challenges, especially in the luxury market. A recent report by real estate brokerage Redfin shows that in the three months ending Aug. 31, sales of luxury U.S. homes dropped 28 percent, from the same period last year. That marks the biggest decline since at least 2012, when Redfin’s records began, and eclipses even the 23 percent decrease recorded during the onslaught of the pandemic in 2020, the report said.

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