Housing Market Updates November 3, 2023

Nov. Housing Market Update

Most of metropolitan Phoenix continues to be a seller’s market, though it has softened. On the outskirts, Buckeye, Goodyear, Queen Creek, Maricopa and Casa Grande are now buyer’s markets while Litchfield Park is balanced.

Inventory Still Low, But Increasing

Inventory of homes for sale continues to rise across the valley, up 22% in the last ten weeks, and days on the market will likely continue to climb through the end of the year. Supply is currently 41% below normal for this time of year. Homeowners with extremely low interest rates on their current mortgage are generally staying put, but those with life changes affecting their housing situation (growing family, job change, etc.) are selling and capitalizing on tremendous equity that grew substantially in recent years. That said, trends do vary by area and price range so let me know if you’d like more information on your home.

Great Time to Buy for Some

Cash buyers have leverage with inventory rising and sellers motivated to close by year-end. Buyer demand continues to be heavily impacted by mortgage rates with people either priced out of the market for what they want or people who can afford to buy but are waiting for rates to come down. Demand is currently 29% below normal for this time of year. Those waiting for rates to come down should consider the following:

  • You may end up paying more for your home because prices will likely be higher and you’ll have more competition for homes when interest rates fall.
  • You have leverage with sellers now, who are expecting to provide seller concessions to be used for interest rate buydowns.
  • Lenders are offering incentives like no-cost refinancing, knowing that people buying now will refinance when rates go down.
  • The end of the year is a great time to purchase a home because sellers are typically motivated and there’s less competition.

Rental Inventory Rising, Rates Stabilized

The supply of long-term rental properties (excluding vacation rentals) continues to rise due to build-to-rent properties hitting the market, short-term rentals becoming long-term rentals, and people with low interest rates trying to hold onto properties when they do need to move by renting them out. Of course, this growing inventory leads to a reduction in rental rates.

Questions or More Info?

If you have questions or would like more information on a specific part of the valley, please don’t hesitate to reach out to me at 312-608-9041 or paula.rosentreter@azmoves.com


Source: The Cromford® Report