Phoenix Real Estate Market Cool Down!
Since April 2022, the market has slowly cooled down from the insane price increases the past two years. Some of the reasons include higher mortgage interest rates which are around 6 percent as well as homeowners realizing it is the top and selling before prices fall even more. Home prices are still higher than they were even 6 months ago but there is an increase of price cuts due to homeowners overpricing their homes. Sellers need to be realistic with pricing since in most cases, what their neighbor got for their home a few months ago is not what you will get for your home now.
Some of the cities with the most price cuts and adjustments so far include Buckeye, Queen Creek, Maricopa, Peoria, Gilbert, Tempe and Phoenix. Some cities have not adjusted as much such as Paradise Valley, Scottsdale, Avondale, Goodyear and Mesa but are still currently on a downward projection.
Similar to 2019 and before, sellers should expect to pay some or all of the buyer’s closing costs through seller concessions to help buyers afford the property. If you don’t and other sellers are offering closing cost assistance to buyers, then your home will sit on the market and not sell. In 2020 and 2021, homes would go under contract within 48 hours but you should now expect that to increase to around 30 or more days which was closer to the norm prior to 2020. If you would like a faster offer, then you must price your home accordingly to attract more buyers, make necessary repairs and take professional photos and videos. If you plan on selling without any repairs, then the price must coincide with that in order to sell. If you have any questions, you can call or text me at 480-779-8579.
