The Phoenix residential housing market is experiencing a relatively soft Spring season. The market as a whole is just barely a seller’s market, which means there are differences across the valley.
- Seller’s markets – Tolleson, El Mirage, Chandler, Apache Junction, Gilbert, Glendale, Anthem, Fountain Hills, Mesa, Phoenix, Sun Lakes, Tempe, Laveen, Avondale, Scottsdale, Peoria
- Balanced markets – Litchfield Park, Cave Creek, Arizona City, Paradise Valley, Surprise, Queen Creek, Sun City
- Buyer’s markets – Sun City West, Gold Canyon, Good Year, Maricopa, Buckeye, Casa Grande
LOW INVENTORY CONTINUES
Inventory of homes for sale is 31% below normal for this time of year. Homeowners with extremely low interest rates on their current mortgage are generally staying put. However, those with life changes affecting their housing situation (growing family, job change, etc.) are selling and capitalizing on the tremendous equity growth in recent years.
BEAT THE BUYING FRENZY
Buyer demand is 20% below normal for this time of year. Mortgage rates remain relatively high but are expected to fall later this year to spur the economy leading up to the Presidential election.
When interest rates fall, buyers who have been on the sidelines are expected to re-enter the market. There will be more competition for homes, pushing prices higher. You can wait for that to happen or you can get ahead of this and buy now. With current market conditions, we’re typically able to negotiate seller concessions to buydown your rate until it makes sense to refinance. Additionally, many lenders are offering no lender or appraisal fees when you refinance with them up to three years after your closing date.
There’s a reason they say “marry the house, date the rate.” Interest rates are temporary since you can refinance, but your house is a long-term investment. When you find the right house for your family, buy it. Home prices are expected to continue to rise in the Phoenix market, not fall. Period.
QUESTIONS OR MORE INFO?
As mentioned at the start of this blog, part of the market favor sellers, part favors buyers and part is balanced. If you have questions about the Phoenix residential housing market 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 |
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