Level 4 Funding LLC, Arizona’s leading real estate company, is predicting that the “new boom time” is near. Real estate experts believe that this boom is going to be different from any other boom, which are typically fueled on greed of the consumer, but this time it will be a supply problem.
Dennis Dahlberg, Level 4 Funding’s General Manager predicts, “With low inventory and too many buyers, we believe the Phoenix Real Estate Market is on the verge of a new boom in real estate values,” He should know! Dahlberg has many years of flipping and fixing real estate experience.
Dahlberg goes on to say that over the past six years, there is little construction or movement of dirt, leaving the Phoenix housing market, which is starving for new homes. He also explains that as home values are going to rise dramatically, and once the current home owners get above water (meaning, once they have equity), they are going to want to move up. And who can blame them?
Dahlberg explains, “We’re going to have a trifecta or the perfect storm – no homes, pent-up demand, and record low interest rates. And if you throw a little inflation on top of the mix – watch out! Bam! It’s going to be a wild ride – a Wild West ride,” states Dahlberg, who is basing his prediction on data provided by S&P Case Shuller.
The S&P Case Shuller’s data says the bottom is over and the market is moving up again. And like the return of any monster in a movie: this time it’s going to be even bigger.
As we stated, the data further suggests the real estate market in the Phoenix area is heading up. That leaves the questions; is it time to buy real estate again? How long will it take to come back to normal, or should people get out of the market and wait? These are difficult questions to answer. Check back for a future blog about what Dahlberg thinks those answers are.