Monday, February 26, 2007

West Valley housing boom

I read a couple of articles every week which, if you read between the lines, all say the same thing:  the slow housing market in the Valley of the Sun is temporary, and we should expect a long-term outlook of strong growth for the coming decades.  That stands to reason, since there are approximately 10,000 net new people moving to the Phoenix area every month.  Eventually that demand will soak up all the excess inventory of houses currently for sale, and will drive our growth engine once again.

Last month economist Elliott Pollack advised a group of business and civic leaders in the West Valley that "you're not only growing, but you're now the major player in the game."  He went on to outline his long-term expectations for each of the West Valley cities.

What does this mean to the average homeowner in the West Valley?  Nothing different from what we've been saying for months..  If you're going to move locally, go ahead - any loss you take on the home you're selling will be recaptured on the home you're buying.  If you're moving out of state, or if you're selling without buying another home, you will probably be better off to wait a year or two, if possible.  And if you've bought in the West Valley, you should be in for many years of solid appreciation.  And that's good news to all of us!

-Chris