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The Real Estate market is a funny thing. Is now a good time to buy or sell? How do I know? Who do I trust for the most reliable information?
Who Are Your Sources?
There are many sources out there with articles that cover the general condition of things without taking into consideration the condition and trends of a particular localized market. An article’s title might grab your attention to read it, but as a Realtor myself, I would want to talk to a local agent in the market where I’m looking because they would be the most informed about that particular area. That’s one of the reasons why they earn their commission. If I want to buy a property in Illinois, would I talk to a California agent about the market? Or would I talk to a friend who lives in the area but has very limited experience in the overall trends?
After a crazy Seller’s market in most of 2021 and 2022, the GENERAL trend nationwide has either normalized or gone into more of a Buyer’s market. However, there is a trend of people leaving certain states and moving to other states or to more rural areas. Arizona is one of those states to where people are moving. Let’s talk about Arizona, since that’s where I’m a licensed Realtor.
Buyers…
Buyers are worn out after two years of fighting to get a house, only to lose it to someone offering cash or tens of thousands of dollars over asking price, waiving the inspection, and other concessions to the Seller in order to get the house.
It’s understandable how Buyers are skeptical or holding back to make an offer, even if they love a house. And with the interest rates having increased several times, Buyers can no longer afford as much house as they once could.
In the last four years, the price of homes in Arizona has increased dramatically. Many people are moving here because of the mild weather and new job opportunities created by several large companies building plants, warehouses and offices here. Prices rose so much during this time because of the lack of inventory. The good news is that inventory is up. The bad news is that there is still a housing shortage because of the number of people moving here, so that keeps some prices up.
and Sellers…
Both Buyers and Sellers have options here with the current market. According to the Cromford Report, which provides detailed information on a daily basis to track the history and current status of the Greater Phoenix residential resale market and offers unique insight into its future direction, here is what they say about the current state of things here:
For the month of December, the market swayed toward Buyers. But now that interest rates have somewhat settled, Buyers have some good options due to the price drops during the 3rd and 4th quarters of 2022. No more bidding wars, but Buyers are under the mistaken impression that the pendulum has swung completely the other way, and they are waiting for prices to continue to drop. The market numbers DO NOT support that in all areas of Greater Phoenix.
- For Buyers, areas that are more normalized leaning toward you are the towns of Buckeye, Goodyear, Maricopa, and Queen Creek. Two of these are areas located between Phoenix and Tucson, and the other two are more on the outskirts of Phoenix with a building boom happening.
- Buyers will find a more balanced market in the towns of Peoria, Gilbert, and Surprise.
- The following cities are more balanced but leaning toward Sellers and have held most of their value because of their desirability:
Avondale, Cave Creek, Chandler, Fountain Hills, Gilbert, Glendale, Mesa, Paradise Valley, Phoenix, Scottsdale, and Tempe.
If you’re a Seller in the Greater Phoenix area, it’s a good time to sell. If you’re a Buyer looking to purchase or relocate here from another state, you also have many options. The mountains and incredible sunsets are waiting for you!
