The Phoenix Arizona housing market is finally shifting! Here in the Valley, More homes are coming onto the market, and demand for homes is cooling down. But, prices are still expected to rise, especially in luxury communities like Scottsdale and Paradise Valley. Today I’m going to quickly break down how this is possible, and what YOU can do to win, as we dive into what’s happening in our market going into June 2022..
It’s STILL a seller’s market. Prices are STILL rising. But it’s noticeably less crazy out there, and buyers are beginning to have more options and some room to negotiate.
So, average home sale prices are up to $591,000, which is a 25% increase year over year.
Also, the total number of homes on the market is now up 10.9% year over year! However, our housing inventory was SO incredibly low, for so long, that it still remains a seller’s market here in the Phoenix, Arizona area.
Total home sales for the year are down 8% from this time last year.
The main reason for this drop in home sales is the rising interest rates. Higher rates mean higher monthly payments, meaning, buyers who don’t have savings for a large down payment are at greater risk of being priced out of the market. Unfortunately, this is occurring just as nationwide rents reach an all-time high, making saving more difficult for those looking to buy their first home
SO, what’s happening with the rentals? Well there is a massive amount of multifamily units soon coming to the market. However, with inflation at an all-time high, many landlords are increasing their rents to try to capitalize on the fact that most millennials have not saved up for a home and are staying in rentals much longer.
So what’s the future going to look like? Well, the FED has told us that there will be even more increases on interest rates this year.
Also, historically, most recessions see home prices RISE, not fall. And in times of high inflation, prices rise even faster than normal. The crash of 2008 was an anomaly, and it’s not going to happen now.
What I believe IS going to happen, is that prices will stabilize and yet keep creeping upward. And Rising rates mean that homes will be less affordable than they are now.
So, what should you do to win in this market?? Well, that depends on your goal, and where exactly you want to make a move. For example, your strategy would look very different if you're selling and buying in Scottsdale Vs. Anthem, or if you're moving from California to buy here, or just buying your first home.
I break it all down and answer these questions in the video!
This is just my analysis of the market. You can look at all the information online.
If you agree with me, disagree with me, comment on this video and let me know! We can talk about it. I'd love to.
Or, reach me directly: 480-660-3525
Time Codes:
0:00 - Intro
0:24 - Metaphor for Today's Market
0:50 - Market Data
1:23 - Effect of Rising Interest Rates
1:43 - Rental Market Breakdown
2:00 - Future Market Predictions
2:28 - My Advice
3:15 - Outro