Many in America right now would not deny that the housing market has taken a sharp turn from the glory days in 2002-2005. Looking back at the rapid inflation of home prices in such a short period of time, it’s not rocket science to see that this price jump was not based on solid financial fundamentals, but rather by a false sense of demand, low interest rates, toxic mortgage plans, and willing lenders giving loans to risky customers.
Many of you are asking now, well what does this have to do with Wickenburg and my home? The answer is not for the faint of heart!
According to ZipRealty, the number of homes on sale in the Wickenburg market now stands at 351. This is the largest number of homes that have been on the market in the two years I have been tracking it. There is much more supply than currently meets demand.
The psychotic part of all this is that developers are currently building more homes and adding inventory to the already saturated housing market in Wickenburg. New housing projects such as Wickenburg Ranch and Hermosa Ranch are forging ahead with projects because if the developers do not develop, well it’s off to find a new line of work. The safety problems inherent with the Hermosa Ranch project alone (due to the proximity to the airport’s runway) would be enough for a normal person to delay or cancel the project.
It just does not make good financial sense to build a product when no one wants it. Whether this will be the case in 10-15 years, no one can tell. But right now there is just not a need for the new inventory.
The reason people are drawn to Wickenburg is because of the vast open space, desert views and the gorgeous sunsets at night. Wickenburg should not be turned into another Chandler or Surprise due to shortsightedness.