These factors are changing as the housing market continues to shift.
In case you weren’t aware, the real estate market is changing. We’re moving away from an extreme seller’s market, and things are slowly becoming more normalized. Today I’ll tell you about the three biggest changes that I’ve noticed lately:
1. Inventory. In March, the Phoenix area MLS had about 4,000 listings, but we now have about 18,000. That shows demand has fallen below the rate of new listings, which is causing our supply to rise.
2. Interest rates. Interest rates are currently around 6% for a well-qualified buyer who puts 20% down. That impacts affordability, meaning fewer people are willing to purchase a property at our current prices.
“Things are slowly becoming more normalized.”
3. Expectations between buyers and sellers. Buyers are noticing that the market is shifting, while some sellers are still clinging to the dynamics of the past market where they were getting 25 offers in one weekend. Those days are over.
We’re moving toward a more normal market cycle. As things settle down, it’s very important to work with a great agent that understands the local market, pricing and marketing strategies, and negotiation tactics. If you have any questions about buying or selling a home, please give me a call or send me an email. I’d be happy to set up a free consultation.
