As experienced Realtors in the Greater Phoenix area, we’re excited to share with you the latest developments in our local real estate market. So far this year, we’ve seen a somewhat stagnant market with low inventory and high interest rates turning off buyers – but that may be about to change, offering a window of opportunity for Phoenix homebuyers.
Currently, we’re seeing a notable shift towards a more balanced market according to the Cromford Report – the Phoenix market in just the past month has seen an increase from two to three months’ worth of inventory. According to Goldman Sachs economic forecasts, “the US economy is on its final descent to a soft landing,” with GDP expanding 2.1% in 2024, translating to more buying power. This positive outlook and traditionally slow holiday sales market combine for an opportune window for buyers in Maricopa County, especially as rates dip. Several cities in the region are already favoring buyers or at least showing a balanced trend.
Opportunity for Phoenix Homebuyers: What Buyers Need to Know
If you’re considering buying a property, now is an exceptional time. We’re now seeing an increase in loan applications – many buyers know that the fourth quarter traditionally sees less competition. They’re also taking advantage of the recent significant drop in interest rates (the largest in 2023).
Sellers, facing longer marketing times due to these market shifts and previously high rates deterring buyers, are now more inclined to negotiate. This includes potential reductions in price and concessions on buyer incentives like closing costs.
Opportunity for Phoenix Homebuyers: What To Do Next
Tina Tamboer, Senior Analyst of the Cromford Report, highlights this important point: While mortgage rates have been challenging to predict over the past year and a half, there’s a general consensus that the era of rate hikes might be nearing its end. Should mortgage rates start to decline, we could see a revival in the market. Therefore, a buyer must stay active and alert for opportunities in November and December. Remember that the competitive peak home-buying season kicks off again in 2024.
If you’re ready to make a move, call us today to set up your new home search. We can give you an idea of what’s available on the market for your budget and also put you in touch with reputable lenders to get qualified quickly. And check out our advice for a drama-free purchase and pro tips for getting your offer accepted.
Opportunity for Phoenix Homebuyers: Sellers Can Still Make the Most of a Buyers Market
As a seller, adapting to the current market is key. This means pricing your property in line with today’s conditions rather than those of even a couple of months ago. In areas like Surprise, Litchfield Park, Goodyear, Buckeye, Maricopa, Casa Grande, Gold Canyon, and Queen Creek, pricing in favor of the buyer is advisable. Cities like Cave Creek, Peoria, and Sun City are still balanced but may soon tip in favor of the buyer. While other areas remain seller’s markets, they show signs of weakening.
If you’re wondering what your home would list for in the context of these changes to the market, contact us for your complimentary Comparative Market Analysis. We will compare your house, location, features, and proximity to community amenities to homes recently sold in your area to give you an idea of how much your home might sell for today. While you’re at it, check out our advice for getting the most for your home with a drama-free sale.
Have a more complicated scenario as a Buyer And/Or Seller?
- Let’s talk if you currently own a home and are wondering if you want or need to sell it. You might decide to keep your current home as an investment property to maximize potential monthly cash flow and ongoing appreciation. Learn more about the benefits of owning investment property in Arizona in our recent article.
- If you’re not sure you’re ready to own an investment property, check out these four popular myths.
- If you currently own a home leased by tenants but have concerns about selling while the home is occupied, learn more about the importance of working with a seasoned, licensed Arizona Realtor experienced in property management.
- If you’re wondering if selling with or buying from a “we buy homes for cash” company, find out more about the pros and cons here.
Looking ahead to 2024, it’s hard to predict whether these trends will continue, especially with mortgage rates being such a variable factor. The best approach is to respond to the market as it stands now. Rest assured, we will keep you informed about market fluctuations, enabling you to make well-informed decisions in your real estate ventures.
Questions about how these market changes will impact your goals in 2024? Call today and speak with one of our experienced Realtors at 480-270-5355.