The Greater Phoenix market has been steadily shifting away from sellers. Within a few days of this writing we will be in a balanced market overall. Eleven cities already are balanced or favor buyers – eighteen favor sellers but are eroding.
If you are a buyer – this is a wonderful time to buy. Seasonally, there are less buyers shopping in the 4th quarter than any other time of year. Additionally, interest rates have had the largest drop in 2023 last week – resulting in a rise in loan applications. In addition, sellers have been subjected to longer marketing times - courtesy of the market shift and higher rates scaring off buyers. Tired sellers are often more willing to negotiate on price and buyer incentives (closing costs). If you regretted missing the last buyer’s market – don’t make the same mistake again. As Tina Tambour of the Cromford Report shares:
“Mortgage rates have been near impossible for experts to predict over the past 18 months, however there are strong feelings that the end is near for rate hikes by the Federal Reserve. If mortgage rates decline in response, then the current market decline will be short lived.
In short, it’s a good idea for buyers to stay engaged and vigilant in identifying opportunities in November and December. Once 2024 begins, the peak home-buying season is back in swing with more buyer competition.”
If you are a seller, your best strategy is to price for today’s market – not the one we had even 2 months ago. If you are in Surprise, Litchfield Park, Goodyear, Buckeye, Maricopa, Casa Grande, Gold Canyon and Queen Creek – you will need to price in the buyer’s favor. Still balanced is Cave Creek, Peoria and Sun City – but will soon tip. All the other cities are still seller’s markets, but weakening fast.
Will this year’s trend continue in 2024? No one knows. The wild card of course is mortgage rates – something that is impossible to predict accurately. For now, the best plan is to address the market at hand. As always, we will keep you apprised of the market fluctuations so you can make informed decisions.
As a note, we are so grateful to our friends and clients who honor us every day with their trust. Thank you from the bottom of our hearts. We wish you a very happy Thanksgiving.
Russell & Wendy Shaw