From Newsweek:
Phoenix Housing Market Faces ‘Mass Sell-off’ as Home Values Plunge
After the dust settled on the pandemic buying frenzy, which massively inflated home prices in the city, property values in Phoenix are collapsing.
Real estate analyst Nick Gerli, the CEO of Reventure App, warned of a potential incoming crash, as home prices are down 6.9 percent from their peak in June 2022.
“This market is trending down, and trending down fast,” Gerli said in a recent YouTube video.
Newsweek contacted Phoenix Realtors for comment by email on Thursday outside standard office hours.
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According to Reventure data, home values in the Phoenix metropolitan area were down 1.3 percent in March compared to a year earlier and 0.46 percent from February. They were also down 7.4 percent from their June 2022 peak ($452,466 versus $491,960).
“Phoenix is already starting to experience a housing market correction,” Gerli said in the YouTube video. “However, this correction is going to accelerate over the next 12 months due to a massive pileup of inventory and supply on the market that is now causing sellers to freak out.”
There are 18,701 homes for sale in the Phoenix-Mesa-Chandler metro area, Reventure data shows—the highest inventory since 2017. This massive growth in supply means there is a sell-off of homes in the city, Gerli said.
“The data is clear. The market in Phoenix is declining, and it’s actually going to get a lot more affordable for you as a buyer, which is the good news here. A declining housing market is going to be bad for some people,” Gerli said, adding, “But it’s going to be good for other people, particularly homebuyers who have been saving up over the last five years.”