10601 North Hayden Road, Suite I-100
Scottsdale, AZ 85260
My Blog
Phoenix, AZ Metro Daily Market Update
Posted On: April 19th, 2022 5:27PM
Another day of more properties coming off the market than on. With interest rates now at above 5%, it will be interesting to see if contracts become weaker. The new contract activity suggests rates will have to go higher to have any meaningful impact on low supply market conditions.
Today's 30 yr fixed according to nerdwallet stands at 5.077%. This is historically a great interest rate, yet with unprecedented price elevation, it will put more strain on certain buyers. Top inbound migration into Phoenix is from Los Angeles and Seattle. Buyers from those areas come to Arizona with more equity and less concern about local price price appreciation and higher mortgage rates.
Questions to consider and that remain to be seen moving forward:
-Will the inbound migration trend continue?
-Will the summer heat cause new homeowners to reconsider their move?
-Will the economy and remote jobs continue to support living in Phoenix?
-Will the higher interest rates cause the home sales that occur in LA and Seattle to slow down, thus putting less people in a position to move to Arizona?
The rest of 2022 will be fascinating to watch unfold. Stay tuned as I monitor the Phoenix, Arizona Metro Real Estate Market and provide timely updates. With up-to-date information it will be easier to plan your real estate strategy as we navigate the rest of 2022.
