When Should You Buy or Sell in Arizona’s Housing Market?

By Arizona Home Group

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We often get asked, “When is the best time to buy or sell?” Here in Arizona, we have seasonal trends. Usually, at the beginning of the year and into spring, we see an increase in pending sales for the first couple of months.

Another reason why market activity picks up during this season is the snowbirds. Many home sellers didn’t put their homes on the market around Thanksgiving and Christmas to wait for the snowbirds to appear this winter. Now that sellers are ready to list their homes on the market, inventory will increase, and this poses a problem as we head into the spring.

Why is this a problem? When there are more homes on the market but fewer buyers, it can lead to a softening of prices. This means sellers might need to lower their prices to attract buyers. We are already seeing this trend in some neighborhoods.

Interestingly, even though some neighborhoods are experiencing a softening in prices, the median home price across the Phoenix metro area increased by 5.2% last year. This shows that while some areas may be cooling, the overall market can still be growing.

The recent increases in 30-year mortgage interest rates can also dampen demand. Higher interest rates mean that borrowing money to buy a home becomes more expensive, which can make it harder for some buyers to afford a home. As a result, this could lead to fewer buyers in the market, contributing to the supply-demand imbalance.

What can we expect from the housing market in February? There’s no saying for sure if the housing market will improve or not this month. Right now, we’re seeing more pending sales, but we are also noticing an influx of homes coming onto the market. If we start getting 21,000 to 23,000 homes, we’re likely going to see downward pressure on prices.

When is the right time to buy or sell a home? It depends on you and what works best for your needs. Honestly, in Phoenix, we’re blessed with a 12-month selling season. While some parts are hotter than others, any time of the year is a great time to sell here.

Looking ahead, here’s something to think about: If you’re renting, in five years, you might look back and wish you had bought a home. Historically, prices tend to keep going up, just like everything else.

If you have any questions, don’t hesitate to reach out to us at (602) 571-3730 or AHGadmin@gmail.com. We’re ready to guide you in real estate anytime.