New Listings are at the Lowest Level on Record. This historically low supply of new listings is weighing more significantly than the counterbalancing factor, low demand. The effect is price levels being supported in spite of high-interest rates. Well-cared-for and well-positioned homes are still demanding premium sales prices from both cash buyers and buyers leveraging financing. This trend will continue unless major economic stress forces more home sales.
Interest rates have risen causing monthly mortgage payments to become less attractive. As a consequence, many would-be-buyers have chosen to rent which is causing the available rental supply to trend downwards.
MARKET CONDITIONS
GREATER PHOENIX IS BACK IN A SELLERS MARKET – Tracking 2015-2016 (NOT 2021-2022) • However, recent mortgage rate increases could slow demand and push the market back to balance if they are sustained • Contract Activity is currently below 2014 levels – will increase if rates decline • Only 3 Buyers’ Markets left - Buckeye, Maricopa, Queen Creek
FHA/First Time Home Buyers Stepping Up - Owner Occupant Sales Back in Normal Range at 75% • FHA Loan Limit Raised in 2023 to $530K • FHA Average Mortgage Rate is 0.55% lower than Conventional • Mortgage Insurance Premiums reduced on FHA loans effective March 2023 • Owner Occupant Sales Back in Normal Range at 75%
WHY ARE PRICES NOT DECLINING? • Total ARMLS Listings Under Contract - 4th Lowest Level in at least 18 Years • Total ARMLS Active Listing Count – 4th Lowest Level in at least 18 Years • New Listings Added to ARMLS in Greater Phoenix – Lowest Level in at least 23 Years
Owners with 2yrs+ Ownership Still Close with Significant Profits (Based on March Sales Price per Square Foot Measures) • +21% for 2yrs+ ownership • +64% for 4yrs+ ownership • +90% for 6yrs+ ownership
Leading metrics in Greater Phoenix do not support continued downward pressure on price to the same degree as the last half of 2022
Spring has arrived, and that means more and more people are getting their homes ready to sell. But with recent shifts in real estate, this year’s spring housing market will be different from the frenzy of the past several years. To sell your house quickly, without hassles, and for the most money, be sure to follow these four simple tips:
1. Make Sure You Give Buyers Access
One of the biggest mistakes you can make as a seller is limiting the days and times when buyers have access to view your home. In any market, if you want to maximize the sale of your house, you can’t limit potential buyers’ access to view it. If it’s not accessible, it could cost you by sitting on the market longer and ultimately selling for a lower price.
2. Make Your Home Look as Good as Possible on the Inside
For anything to sell, especially your home, it must look inviting. Your real estate agent can give you expert advice on ideal staging for your home. Even updating a room with fresh paint, steam cleaning carpets, or removing clutter from the garage can make a big impact.
3. First Impressions Matter
The old saying “you never get a second chance to make a first impression” matters when selling your house. Often, the first impression a buyer gets is what they see as they walk up to the front door. Putting in the work on the exterior of your home is just as important as what you stage inside. Freshen up your landscaping to improve your home’s curb appeal so you can make an impact on potential buyers.
4. Price It Right
This is probably the most important aspect of selling your home in today’s real estate market. If a house is priced competitively, it’s going to sell. Period. To do this, you have to know what’s happening with home prices in your area and understand the factors that are affecting the market right now. That’s why it’s best to work with a trusted real estate professional who can ensure you list your house at the right price.
Bottom Line
Everyone selling their home wants three things: to sell it for the most money they can, to do it in a certain amount of time, and to do all of that with the fewest hassles. To accomplish these goals, start by connecting with a local real estate professional to understand the steps you need to take to sell your home this spring.
Scottsdale Phoenix Paradise Valley Cave Creek Carefree Fountain Hills Mesa Tempe Chandler Gilbert Glendale Peoria
Dennis Carr - Realtor, GRI Licensed in AZ and CA 480.825.2870
Thinking of Selling or Buying?
Thank you for reading the Arizona Metro Market Report. I hope this newsletter helps you stay informed about local real estate trends.
The Phoenix real estate market continues to be one of the most attractive locations within the United States. An exodus from Los Angeles and Seattle has helped fuel the growth. In spite of historically high prices in Arizona, the cost of housing continues to be a bargain for many out-of-state buyers. While overall there are more listings for buyers to choose from vs last year, new listings are scarce. As a result, prices have not crashed due to oversupply. Contact me for a more targeted view of a particular location within the Phoenix Metro you are interested in.
If you are considering purchasing in Arizona and would like to discuss the possibility of buying or selling without being pressured, contact meso I can learn more about your timeline and real estate goals. It is important to plan ahead and develop a strategy for success.
