The Latest Trends in Arizona’s Real Estate Market

By Arizona Home Group

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Who has the upper hand in today’s market: buyers or sellers? The big story of the year has been interest rates and how they’ve been affecting the market. Our latest market report for November is no different. We’ll give you a rundown of what’s happening in real estate, some changes, and how it affects you as a buyer or seller.

We had a slower summer than usual, and we’re seeing some concerning trends heading into the fourth quarter. Here’s what’s happening:

There has been a steady increase in inventory for about 11 weeks now, with nearly 19,000 homes on the market. That’s a 40% increase since January and a 47% jump since last October. We are expecting more homes to come as we approach winter. Right now, we have about 3.8 months of supply. That means home prices will start to fall.

The good news is that despite the rising number of homes for sale and flat pending transactions, home prices are holding steady. The monthly average home price is still around $457,000, and the average price per square foot is about the same as last October.

What should we expect heading into the homestretch in 2024 and into 2025?

• We’re seeing slight movement in interest rates, but generally, they have settled down. I don’t think we’ll see much more movement in rates.

• We had some positive job reports last October, and the Fed appears to be feeling good about the inflation and is being kept under control.

• The economy is looking good, but because of today’s rates, I don’t think buyers will jump off the fence to make any purchases, opting to wait a little longer.

However, even though interest rates are steady with a low chance of significantly dropping, it’s a good buyer’s market. Why?

There are more houses to choose from, less competition, and sellers are giving concessions. Right now, sellers are negotiating at as much as 4% off their asking prices, which for some might not mean a lot. But remember that not long ago, sellers were getting 103% of their asking price, so that’s a big plus for buyers.

If you’re thinking about buying a new home or just want to chat about the market, don’t hesitate to contact us at (602) 571-3730 or john@arizonahomegroup.com. We’re here to help, no matter what your timeline looks like.