House prices in Arizona are rising and that could be bad news for Australia’s property market – ABC News

December 19, 2021 by No Comments

There’s something romantically rustic and unique about Phoenix, Arizona. 

Renowned for its year-round warmth, specular vista and expansive red dirt fields dotted with giant cactus, the Valley of the Sun has long been the holiday mecca for those living in northern states during the harsh winter months. 

However, when the COVID-19 pandemic hit, it became a refuge for those feeling captive in big cities. They didn’t just travel there temporarily, they relocated long-term.

As a result, house prices in the southern desert city have jumped an unprecedented 35 per cent in the year to June.

“It’s kinda like we’re on hyperspeed now, everything is super fast. If you hesitate, you’re out,” real estate agent Jeff Fields said.

“There are multiple offers on properties and a lot of waiving of inspections, which is crazy.”

Jeff Fields has seen an extreme demand for property in Phoenix.(ABC News: Cameron Schwarz)

Homes in the area that were once worth $US500,000 ($703,000) are now easily selling at $US800,000. 

“Some properties are receiving as much as 20 to 30 offers on the day [of listing]. That’s how crazy our market has shifted,” Mr Fields said. 

“I just closed on a property for a buyer who, four months earlier, it had sold for $US100,000 less.”

There are a few factors at play, but the phenomenon that’s shaking out in Phoenix isn’t isolated.

It’s happening in markets across the globe, including Australia. 

Hundreds of viewings, priced out within days

Amy and David Guerrero found themselves putting in offers as soon as properties were listed in Phoenix before they eventually found their home.(ABC News: Cameron Schwarz)

Young couple Amy and David Guerrero have long dreamed of owning their own home.

During 2020, they ramped up their efforts to enter the first home buyer market but were priced out by out-of-state money, time …….

Source: https://www.abc.net.au/news/2021-12-19/house-prices-arizona-inflation-what-it-means-for-australia/100689184

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