Number of Homes For Sale
The number of active homes for sale in Phoenix has gone up since last quarter from 8,261 to 9,796 as the summer real estate market picks up, increasing inventory. Rising interest rates towards 5 and 6% coupled with rising prices has slightly slowed down the market, however I believe it will take a few years for inventory of homes to get to a point where the market is more balanced. Real estate market crashes over 20% have only happened 4 times in 250 years with 2008 being one of them so it is highly unlikely anything to that magnitude happens any time soon. I expect a 5-10% correction some time in the future within the next 5 years which is not a lot. It would be similar to a house dropping from 500k to 450k. Homes are still going under contract fast usually within a weeks time.
Average Home Price
The average home price in Phoenix as well as Laveen is currently $465,000 while 12 months ago, it was at $369,000 which is nearly a 30% appreciation in one year when historically, it has been around 5% so a market correction is inevitable but not to the extent some people believe. I believe Arizona will not be as affected by a market correction compared to other states due to it being one of the hottest destinations in the country with a yearly population increase of around 100,000. Many people will have to move to the outskirts of Phoenix such as Coolidge, Eloy, Florence, Arizona City and Tucson where home prices are still below the $350,000 range to afford housing and others will choose to move to more affordable states such as New Mexico, Texas or the Midwest.
Advice For Sellers
If you’re thinking about selling your home, I would look at other similar homes in the area that went under contract or closed within the last few weeks to see where the market currently stands in terms of how long it took for the home to go under contract and if it sold above the list price. This will give you a better idea of the present market since the market is always changing by the week. It will also give you a better idea of what price you wanted to list your home for to either get a faster sale within a few days or a longer sale over a few weeks to a month.
Advice For Buyers
Your first step should be to speak to 2-3 different lenders to see what you qualify for and their closing costs. If you’re looking to buy a newer build home below the $350,000 range, then I would recommend looking outside of Phoenix towards Coolidge, Eloy, Yuma, Florence, Arizona City and Tucson. Any newer built home in the 21st century listed below $400,000 in the Phoenix Metro area will almost always receive multiple offers in this current market so if you’re not ready to offer above asking price and present strong offers, you are wasting your time searching for a home. If your budget is $400,000, then I would recommend looking at homes well below that in order to have wiggle room to offer much more in a multiple offer scenario where people bid up the asking price similar to an auction.
If you need help with anything or have any questions, you can call me at 480-779-8579 or email me at TaxesAndRealty@gmail.com.