What a whirlwind the real estate market has been over the past 12-14 months! As interest rates doubled from what they were just over year ago, sales volume dropped as well as home values. Now, with creative loan products, builder incentives, grants and interest rates trending downward we are starting to see the end of the housing downturn in greater Phoenix. According to ARMLS statistics, at the end of the first quarter, March 31, the average sales price of a home increased for the second consecutive month, rising 3.4% month over month, an increase of $17,600. The median sales price of a home also increased for the second consecutive month, rising 1.9% month over month, an increase of $7,900. April is forecasted to be the third consecutive month in both categories with bidding wars resuming once again for choice homes under $450,000. Bidding wars often happen when buyers demand outpaces supply, homes for sale. Supply has been low in Phoenix for some time but now there is a new factor – interest rates. Many who bought or refinanced their home in the last few years, have no desire to sell and let go of their substantially lower interest rate.

Michael Orr of the Cromford Report, stated, “The balance between supply and demand has been moving consistently in sellers’ favor since mid-November 2022. This confirms we are in the rebound phase of the correction that dominated the second half of last year and created an atmosphere of fear throughout the market. That fear can now be replaced with relief as one market signal after another turns positive and resumes a normal trend. Right now, supply is weakening much faster than demand. Competition between buyers is starting to warm up because there are too few sellers.”

If you were concerned about buying a home because you thought home values were plummeting, that is not the case anymore, at least in greater Phoenix. As always, please call or text me if you would like further information on the market, or to answer a specific question that affects your decision to buy or sell a home.