Is it a good time for buyers to shop for homes in the Phoenix market?
Due to rising interest rates, many buyers have been on the fence with their purchasing plans. However, now that the market has shifted, is it the right time for them to pursue their real estate goals once again? To answer this question, we’ll compare the current market with that of a few months ago.
Back in January, the market was so hot that homes received multiple offers, and buyers were willing to pay above list price. Now, the conditions are much different. Buyers can get the house for its market value or less, and they may even negotiate a seller’s concession.
To understand the price difference between now and six months ago, let’s take a close look at the numbers. Buying a $400,000 house in January with interest rates around 3% meant paying about $20,000 above list price. The mortgage payment would be roughly around $1,700 monthly. Today, buyers are more likely to purchase a house for less and get a huge discount. Since inventory is increasing, they’ll also have a bigger selection of homes.
As a real estate agent, you have to educate your buyers about the changing Phoenix housing market. We’ve had over 10,000 price reductions, and in the last two months, our inventory has increased by 8,000 homes! Now is the perfect time for your buyer clients to return to the market.
If you want to learn more about what changes are happening in our market and how they affect buyers and sellers, call or email me and let’s have a discussion. I’m here to help.