| The Phoenix housing market update is again a mixed bag. Residential housing sales leveled off early this Spring. We typically see contracts increase from January through April, even into May, but that didn’t happen this year. The market leveled off in February and has remained flat since then. That said, pricing continues to rise.
Our metropolitan market as a whole is currently at the high end of a balanced market, but there are differences across the valley.
- Seller’s markets – Chandler, Tolleson, Apache Junction, Gilbert, El Mirage, Glendale, Sun Lakes, Avondale, Mesa, Fountain Hills, Phoenix, Anthem, Tempe, Scottsdale, Peoria, Litchfield Park, Paradise Valley
- Balanced markets – Laveen, Surprise
- Buyer’s markets – Goodyear, Gold Canyon, Cave Creek, Sun City, Sun City West, Queen Creek, Maricopa, Casa Grande, Buckeye, Arizona City
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.
DON’T WAIT, BUY NOW
Buyer demand is 20% below normal for this time of year. Mortgage rates remain relatively high but are expected to fall later this year. When that happens, buyers will re-enter the market and there will be more competition for homes (pushing prices higher). You can wait for that to happen or you can buy now with less competition and refinance your rate later.
I can also help you negotiate seller concessions to buydown your rate for up to three years until it makes sense to refinance. The buydown funds are yours, even if you refinance prior to using them up (in that case, you would get a refund from your lender). Many lenders also offer 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 purchase price doesn’t change. Home prices are expected to continue to rise in the Phoenix market, not fall. What are you waiting for?
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 this Phoenix housing market update 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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