There is a lot of anticipation on what 2024 will bring for the housing market. While many leaders in the real estate industry have mixed opinions for the housing market on a national level, experts are more in agreement on the overall outlook for our local market, and it is all positive. While Phoenix home values did take a hit in 2023 overall, many areas of Phoenix are now flat or starting to see values increase.

While affordability remains a theme in 2024 for Phoenix home buyers, affordability is improving and is expected to continue to improve as the year progresses. While there was a substantial correction in home values after the pandemic, interest rates have more than doubled. This has put many buyers on the sidelines and potential sellers hesitant to list their home for sale, letting go of their low interest rate. The median home price has risen to $460,000 in Phoenix. With interest rates in the mid-sixes, this makes buying a home difficult for many, especially first-time home buyers.

The good news that industry leaders are sharing for Phoenix is this: Phoenix is still more affordable than most metropolitan areas. Job growth and wage growth should remain strong in Phoenix in 2024. Further, mortgage lenders have many lending products available for Phoenicians. Some of these programs include assistance with the down payment, a temporary buy-down of the interest rate or closing costs being credited by the lender. Further, it is expected that the trend for sellers offering credits to buyers to assist them with their costs for buying a home, or to help them “buy down” their interest rate, will continue. Additionally, conforming loan limits for greater Phoenix have increased to 766,550 - $40,350 more than last year. This is all good news, combined with the Mortgage Bankers Association predicting that interest rates may fall slightly below 6.0% by the end of this year.

If you ever want to talk through your options of buying or selling property, please send me a text or give me a call. Take care and have a happy new year!