Is Arizona One of 3 Housing Markets Set to Crash in 2024?

• The publication Newsweek rolled out predictions for three housing markets that could see a crash in the coming year
• The Phoenix Metro Area will likely see the biggest hit
• Arizona's outlook

Boom or Bust: The Arizona Housing Market this Year

Looking back to the Covid Era, that liminal, dreary lifetime ago, everything was strange and out of proportion. While we were told to shelter in place and stay home, a lot of us looked at the walls surrounding us and decided it was time to move on.

The housing market was so hot at the time, internet shorts sprung up poking fun at the process. Homeowners could list their property at 10 am, and have it sold by 10:30. That seller could turn around and purchase something new by 11:45 am and be moved by the end of the week.

Holderness Family Laughs on YouTube poked fun of the housing market with this hilarious video:

This may seem like an exaggeration, but it was really this crazy. Housing prices skyrocketed and the sellers certainly had the edge in that crazy market.

The 2024 Housing Market Outlook for Arizona

Newsweek recently published an article with a dire prediction for three major housing markets across the United States, which they believe are set to crash over the course of 2024. Newsweek reports:

Real estate markets in Illinois, New Jersey and California are at risk of downturn next year due to higher levels of foreclosures, unemployment and underwater mortgages.

Real Estate experts at ATTOM point to stagnant wages and the after-effects of the pandemic as factors that continue to impact the housing market.

The Outlook for the Arizona Housing Market in 2024

Overall, Norada Real Estate forecasts the 2024 Arizona housing market as "generally positive", but caveat the claim, indicating the Phoenix Metropolitan Area may be in for a hit.

• The average home value in Arizona is expected to remain mostly flat. In 2023, Arizona saw an overall decrease of 6.1%.
• The Phoenix metro area is one of the most populous and influential regions could see a slight decrease as we move into the new year. The market will likely rally as we move into 2024.
• The Home Buying Institute reports that inventory levels and new listings are on the decline, which creates increased competition among buyers.

Overall, it looks like the housing market in Arizona will be less affected than in other parts of the nation, especially in locations like New Jersey, California, and Illinois.