Phoenix real estate agents are starting to say that the real estate market is balancing out in Arizona. Over the past few years, Phoenix has consistently ranked as one of the hottest housing markets in the nation.
While it has been this way for many years, experts are now saying that the real estate market is beginning to level out.
Preparing For The Market Shift
Someone Wilder, a Phoenix real estate agent with Hague Partners, says that she has no doubt that Arizona is “in a market shift.”
Many agents and brokers are beginning to notice a shift in the Phoenix housing market, however slight it may be.
Sellers have had a huge advantage in the Arizona housing market over the past couple of years. The inventory was very low, and so were the interest rates, driving tons of buyers into the state’s housing market.
Many homebuyers in Arizona could attest to that statement.
A recent Arizona homebuyer by the name of Arya Choudhury noted that it took them 11 months to close on a home, as there were so many houses that piqued interest, though they would be gone the very next day.
Federal Reserve Rate Hikes
Over the past year, there have been several rate hikes through the Federal Reserve. In June of 2022, the market saw the biggest rate hike since 1994. The goal of the Federal Reserve was to try and curb inflation.
According to a recent report from Zillow, mortgages are starting to react to the changing market. The national average for mortgages across the United States is around 5.8%. Now, more and more houses are sitting empty n Phoenix, as many potential homebuyers don’t want that kind of interest rate.
Wilder noted that there are now more homes on the Arizona market, meaning the balance between the supply and demand in the real estate market is beginning to even itself out. When balances like this start to occur, neither buyers nor sellers have leverage when going into negotiations on a home.
For now, it’s important for homebuyers to consider what the real estate market will look like in five or ten years when purchasing homes, as a lot can change.
What Could This Mean For The Real Estate Market and Home Prices?
In the near future, experts believe that housing prices will either decline or flatten out. This past May alone, median home prices in Arizona went from around $480,000 to $460,000. Of course, it’s also worth noting that this is quite normal during the summertime in Arizona, as the luxury real estate market starts slowing down.
For now, sellers shouldn’t expect to get multiple offers on their homes over the listing price for quite some time.
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