How Would You Describe The Phoenix Market to an Outsider?

Question

Recently I've been offered a lucrative opportunity to come sell real estate in the Phoenix - Mesa - Scottsdale part of Arizona. Coming from California, I'm looking to educate myself on the local market, economy and culture. I'm hoping that some of you local investors and real estate professionals can help bring me up to speed on the market.

I've done some online research, and here's what I've found so far:

• Phoenix was just projected by Realtor.com to be the #1 hottest metro market in the nation in 2017
• Downtown demand at the urban core has helped spur rent growth and the city has seen lots of commercial multifamily activity lately
• It's a low inventory, sellers-market... especially under the median price of $300k
• It's considered a great place to invest in real estate due to continued population growth
• Apparently all this great news is a huge 180 degree turn from 10 years ago

Frankly, it's starting to sound a lot like Sacramento, CA where I'm from. Low inventory, seller's market, population growth and rent increases. I wrote a lot about this here in the Sacramento forum, and perhaps you'll see some correlations if you've got the time to read it.

But, what I really want is your two minute overview on Phoenix market. How would you describe to the new guy in town, and the new agent in the office. Outside of news headlines, I'm really interested to know what's the word on the street.

So, what's it like out there in Phoenix? :-)

Jeff Schneider · Answer

The market is very competitive. There are more Realtors per capita than any other state. Not saying it's impossible to do well but come in expecting that it will be no easy task. Can't swing a dead cat without hitting a Realtor in this town and everyone's mom or co-worker seems to have a license.

The Phoenix housing market is the same right now, very competitive. If things are nice, they don't last long and don't close much off list price.

Doug McVinua · Answer

@Wes Blackwell

The agent population in the greater Phoenix MLS is in excess of 30,000. Phoenix has 4 local boards of Realtors the own the MLS as stated by @Justin Owens above. The total active license population in Arizona is over 50,0000.

Phoenix is a great market, reasonable affordable housing, job growth is on a great path, property taxes are low, abundant sunshine, very fair with investors and landlords!

Come join the fun!

Justin Owens · Answer

@Wes Blackwell is that number just the PAR (Phoenix Association of Realtors) members or does it include WeMAR (West Maricopa aka West Valley) and SEVRAR (Southeast Valley) associations. They all would serve the Phoeniz Metro area.

Wes Blackwell · Answer

@Justin Owens and @Doug McVinua

Thanks for the great input! Sounds like there sure are a ton of Realtors out there! When I did a YouTube search for topics like "Moving to AZ" more than half of the videos were made by real estate agents hahah.

Although I wouldn't be focusing on bread and butter priced homes ($250k to $450k) as the opportunity I've been offered is to come work in the luxury market ($1M+).

Naturally that would eliminate most of the competition since most agents don't work in those price ranges, but I'm sure it will still be no easy task nonetheless.

Probably the main challenge is that buyers simply aren't lining up around the block buy those homes. Getting a listing is one thing, selling it is another.

But there still seems to be plenty of activity in that market, and let's be honest you don't need to sell too many of them to make a great living :-)

Any particular insights or opinions on the luxury market would be especially helpful.

Wes Blackwell · Answer

@Jeff Schneider

Interesting... although that's roughly the same situation here. Sacramento County has a population of 1.46 million and 6,000+ members of the local association of Realtors, and the greater Phoenix Metropolitan area has 4.62 million people and 8,000+ members of the local association. Everybody and their momma is a Realtor out here too, so that won't be much of a change.

And good thing to know that if you get a listing it's basically a guaranteed commission check :-)

@Grant Greene

100% agree. While we all lose a deal to someone's drinking buddy every now and then, it's 100 times easier to separate yourself from the competition.

Grant Greene · Answer

Despite the large numbers of Realtors in Arizona, there's no shortage of deals for professionals like yourself. In fact, the overabundance of realtors ("everyone's mom or co-worker", to quote @Jeff Schneider) plays in your favor as your skills become more apparent against a landscape of me-too agents.

Dylan Vargas · Answer

@Wes Blackwell Lets go Phoenix people! I am anxious to hear as well. Cmon Valley of the Sun!

How Would You Describe The Phoenix Market to an Outsider?

How Would You Describe The Phoenix Market to an Outsider?

Investor-friendly agents in Phoenix, AZ

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