Metro Phoenix Housing Market Update

The metro Phoenix housing market update is interesting this month because we see a further movement away from seasonality. As a whole, the residential housing market is balanced but there are differences across the valley. In fact, the majority of the market is in a soft seller’s market.

• Seller’s markets – Chandler, Sun Lakes, Fountain Hills, Apache Junction, Tolleson, Tempe, Avondale, Gilbert, Anthem, Mesa, Glendale, El Mirage, Phoenix, Scottsdale, Paradise Valley, Litchfield Park, Peoria
• Balanced markets – Goodyear, Cave Creek, Surprise
• Buyer’s markets – Sun City West, Sun City, Arizona City, Queen Creek, Maricopa, Buckeye, Casa Grande

INVENTORY IS RISING

Inventory of homes for sale is still 26% below normal for this time of year. It usually peaks in February or March, but this year it’s still increasing. We are, however, starting to see it soften. The market is performing similar to 2015 with sellers having to compete on their home’s condition, price, and seller concessions. This has been quite a wake-up call for unrealistic sellers, resulting in increased price enhancements (reductions) and listing cancellations. Seller concessions are higher in areas close to new construction and among lower priced homes where buyers need concessions to buy down their interest rate.

SUMMER MAY BE THE TIME TO BUY

Buyer demand is 22% below normal for this time of year. Mortgage rates have not declined as expected earlier this year, but summer may still be an excellent time to buy because sellers with homes on the market now are generally motivated. You can always refinance when interest rates fall. In the meantime, we can negotiate seller concessions for you to buy down your interest rate. Also, some lenders are offering no-cost refinancing with them up to three years after your closing date.

There’s a saying in real estate, “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. When you find the right home for your family that you can afford, buy it!

QUESTIONS OR MORE INFO?

As mentioned at the start of this post, the majority of the market slightly favors sellers, part slightly favors buyers and part is balanced. If you have questions about this metro Phoenix housing market update or would like more information on a specific part of the valley, reach out to me at 312-608-9041 or paula.rosentreter@azmoves.com

Source: The Cromford® Report