PHOENIX — As the fed continues to raise interest rates, local experts say it’s cooling off the red-hot Phoenix real estate market.
Christopher Martinez moved from Seattle to Phoenix back in May.
After renting for a time, he purchased his very first home in a market where sellers were getting 10% above the list price.
“The minimum offer was basically that high!” Martinez said.
The competition for a home was so crazy at the time, he says his realtor submitted six offers in a single day, running simultaneously. If you got a hit he says you couldn’t afford to hesitate or the house would be gone.
“When I got a callback basically, I needed to respond within a day,” Martinez said.
Sindy Ready is treasurer on the board of the Arizona Association of Realtors and has been in Valley real estate for 22 years.
“We’re definitely not in a bubble we’re not going to crash,” she said.
But, Ready says the fed raising interest rates has changed the market drastically over the past three months.
“About three months ago interest rates were in the high threes, and now they’re in the mid-fives up to six, and rumors of them going up even higher,” she said. “That has slowed the market, and where that has caused a change is in our inventory.”
“Three months ago, we were at an inventory level of about 3,500 to 4,000 homes total in the market for the whole Valley, and that’s condos houses mansions, everything,” she added. “We are up to as of this morning 18,700 homes on the market for the Valley.”
Ready says that’s still way low compared to normal inventory levels.
“In a normal market, we would be seeing around 35,000 homes every day. We’re still at a shortage. We still don’t have enough houses for the number of people that want to buy in the area.” she added.
Ready says the slight increase in inventory has however caused sellers to level off their prices.
“This is not a situation where it’s going to drastically drop in price, they’ll be small corrections,” she said.
The price adjustment she says will give buyers more options.
“We’re back into a situation where there may be some room to negotiate a little bit.” Ready said, “In the old market a couple of months ago, every time a house sold the next one would sell another $10,000 higher, and then another $10,000 higher and it was going crazy.”
“So, it’s not that the market is crashing, it’s correcting itself. We’re at a more normalized market where it’s still good for the sellers, but the reality is the buyers have a more normalized scenario. Somebody who’s not a cash buyer may actually be able to buy a house. Before it was like, okay, I’ll pay whatever price you want, and I won’t ask for any repairs. Whatever the seller wanted, the seller got. Now it’s a situation where the buyers have a little bit more say in the matter of what they’re doing with their sell,” Ready said.
Instead of dropping prices drastically, she says sellers will find other ways to close.
“The buyers are having a hard time, because of the higher interest rates they can’t buy as much house. So, if the seller, rather than dropping the pricing, offers to help cover some of the cost of purchasing a lower interest rate through a lender, then that helps them, and for a seller it’s all about what they net,” Ready said.
Ready says the tremendous growth in Phoenix is still outpacing supply, so recent buyers like Martinez shouldn’t worry about their value tanking.
“We are becoming known as a tech destination. Up in the north end of town with the Taiwan chip plant going in at the 303 and I-17, that’s affecting the whole north end of town. We’re very lucky to live in this area and it’s still a great opportunity to own real estate,” she said.
Despite prices dropping since he purchased, Martinez says he’s happy to be a Phoenix homeowner.
“I feel very comfortable that Phoenix as a market, or just as a growing city, is going to be a very secure place to own real estate,” Martinez said.
Ready is confident the market will remain strong.
“It used to be back in the day, we would be thrilled to see a 6% appreciation on our homes as opposed to the past several years where we’ve seen like 29% every year or 31%,” she said.
“Don’t be afraid to be in the market right now. I think it’s a good opportunity and there’s a lot of choices out there from a buyer’s perspective. From a seller perspective, just know you’re not going to push the market, but you’re still gonna get a great return on your investment,” she added.
Experts say cool down coming in Phoenix real estate market & Latest News Update
Experts say cool down coming in Phoenix real estate market & More Live News
All this news that I have made and shared for you people, you will like it very much and in it we keep bringing topics for you people like every time so that you keep getting news information like trending topics and you It is our goal to be able to get
all kinds of news without going through us so that we can reach you the latest and best news for free so that you can move ahead further by getting the information of that news together with you. Later on, we will continue
to give information about more today world news update types of latest news through posts on our website so that you always keep moving forward in that news and whatever kind of information will be there, it will definitely be conveyed to you people.
Experts say cool down coming in Phoenix real estate market & More News Today
All this news that I have brought up to you or will be the most different and best news that you people are not going to get anywhere, along with the information Trending News, Breaking News, Health News, Science News, Sports News, Entertainment News, Technology News, Business News, World News of this made available to all of you so that you are always connected with the news, stay ahead in the matter and keep getting today news all types of news for free till today so that you can get the news by getting it. Always take two steps forward
Credit Goes To News Website – This Original Content Owner News Website . This Is Not My Content So If You Want To Read Original Content You Can Follow Below Links