Current Phoenix Market Conditions: A Balanced Market

The U.S. housing market has shifted – interest rates and inflation are up. This shift has shuttered private investors from gobbling up Arizona housing for rental purposes. iBuyers like Offerpad, OpenDoor, Zillow and others have taken a hit after buying high during the low interest pandemic frenzy. What remains is a more ’normal’ market. Homeowners that purchased prior to 2019 are in a stronger appreciation position. Two – five year appreciation rates are from 28% to 75%.

 

A balanced market today = great for the not-so-perfect buyer! Plus, in general there are more options to consider and time to decide without rushing into a bidding war and overpaying for a home.

 

Seasonally, October – December is the best time to be a buyer in the Greater Phoenix Area. The first few weeks of January will be interesting to watch.

 

Selling a home today looks different than a year ago. Currently, there are 16,747 active and coming soon listings in Maricopa County. Median sales price as of mid-December 2022 was $420,000. Days on Market average is 50 days. Sellers need to make known repairs in advance of listing a property. Also, Sellers need to prepare for price reductions, concessions and/or rate buy downs. If after eight showings in the first two weeks there is no offer, then a price adjustment may be necessary.

 

Buyers have fewer competitors today, more choice of inventory and creative lending options. Many buyers ‘think’ this market balance correction is an opportunity to make extremely low ball offers. Unfortunately, they continue to be disappointed. Sellers are holding price and offering concessions and point assistance to help the right buyer close the deal. That, in itself, is a ‘deal’!

 

Sorry to say, there is no fire sale. What lies before us is another yearly cycle where Sellers will likely have a peak season advantage.

 

If you want to know more about the local market or wish to capitalize on the current market, please contact us today!