Whether you are a home seller or a buyer, it is vital to stay abreast of real estate market trends in your area. The Phoenix listings market is currently in a strong seller’s market, where demand has outpaced supply, leading to stiff competition among buyers and prices rising quickly. However, some experts are concerned that Phoenix’s growth could outpace the ability of potential buyers to afford a property and warn that a price crash may be on the horizon.
One of the primary reasons for this concern is that mortgage interest rates are on the rise, and these increases have had a negative impact nationwide on the affordability of properties. If people find themselves struggling to keep up with their monthly payments, they are unlikely to sell their homes and this has left the housing inventory well below where it needs to be to accommodate current demand. The only way for this situation to improve is for new construction to accelerate and for people to be able to buy their existing properties again.
As a result, Phoenix sellers are having to get even more creative in their attempts to attract buyers. One suggestion is to prioritize home performance features that not only boost resale value, but also deliver immediate cost savings for potential buyers. In her article on this topic, Jan Green points out that many of these upgrades wind up being omitted from home listing databases or going unnoticed during the appraisal process, and this is a missed opportunity to promote them to potential buyers as part of the sales pitch. Moreover, she notes that getting certified by a recognized third-party provider can be an effective means of validating the energy efficiency and environmental benefits of a home.
Phoenix is a popular vacation destination, and its real estate market has benefited from this status in recent years. The city has experienced substantial job growth, which has drawn people to the area and created a thriving market for real estate investors and homeowners alike.
The 2023 season started off with a bang, and while significant price drops are not expected, some analysts are predicting a period of caution that will involve balancing continued growth with affordability for prospective buyers.
This graph illustrates the trend in MLS sales. Each line represents a single month’s activity. Mouse-over a line to see its details.
This is a great graph to use for determining the state of the Phoenix real estate market, particularly when considering a potential sale or purchase. It shows how many MLS sales have closed in each month, and the number of active listings that are not under contract.