June Market Update: Housing Market Shifts in Arizona

By Arizona Home Group

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Time goes by so fast; it’s already mid-year. As we move forward to the second half of the year, we’d like to give you our Arizona housing market update.

There is a market shift as housing prices begin to go down after an upward trend throughout the year so far. This drop in prices is likely due to the rising interest rates in the past few months. Pending sales or homes under contract also dropped significantly to 7% year-over-year and 15% two years ago. This means that there is a decrease in buyer activity due to concerns about affordability. As pending sales continue to drop and homes sit longer on the market, sellers are pushed to reduce their home prices to attract more buyers.

That being said, it presents an opportunity for buyers to explore the market. While the rising rates may be off-putting, the current market trend favors those buyers who are financially prepared. With median and average sales prices expected to go down, buyers can find homes at lower price points compared to earlier this year. Sellers are also more open to offering incentives such as closing cost assistance or buydowns to help offset higher interest rates.

Buyers should take advantage of the low home prices on the market and look into buying now. If buyers can afford the price and monthly payments, then now’s the time to make a move. Waiting for interest rates to go down is not a significant factor, but home prices are. In addition to that, waiting for a decline in interest rate means everybody comes back into the market, making it a seller’s market once more.

The summer market is usually a slow season for the Phoenix housing market, which offers additional benefits for buyers due to less competition. If you are looking for a sign to buy a home in Arizona, this is it. Contact us via phone or email, and let’s discuss your options.