Experts at Arizona Realtors offer insights into Phoenix housing market

As interests rates fall, Arizona Realtors eye prosperity in 2024

Staff Reports | Digital Free Press

Arizona Association of Realtors say they are optimistic looking ahead to a promising year for selling residential brick-and-mortar housing in the Grand Canyon State.

Shelley Ostrowski, 2024 Arizona Association of Realtors president and designated broker for Realty One Group Gateway in Yuma, predicts an interest rate decrease that will bring a resurgence of buyers into the market.

“I see more buyers coming back into the market as interest rates begin to settle,” Ms. Ostrowski said in a prepared statement. “The housing market will remain strong in 2024, emphasizing the importance of clear communication and why buyers and sellers are best trusted to use a Realtor.”

Sindy Ready, 2024 president-elect of the Arizona Realtors and associate broker for RE/MAX Excalibur in Scottsdale also anticipates an interest rate decrease as 2024 progresses, initiating more activity in the market.

“As the weather heats up in Arizona, so will the market,” Ms. Ready. “While inventory might be lower than usual at this time, interest rates are speculated to decrease by the end of the second quarter to a historically normal rate of 6% to 6.5%, which will bring more buyers into the market.”

Ms. Ready also points out the strain on home inventory in the Valley over the last year, which has been impacted by a few different factors including the increased relocation of technology factories to the state, and homeowners who have opted to stay in their current property due to their lower interest rates.

And while the impact of the aging population on the real estate market has many housing experts predicting a “silver tsunami” in 2024 marked by the downsizing of the baby boomer generation, Ms. Ready notes some of the key details on the ground here in the Phoenix metropolitan area.

“Many baby boomers in today’s housing market are rightsizing as opposed to downsizing, meaning they are searching for a different floor plan or a level property that accommodates their lifestyle,” Ms. Ready said. “This means simplifying backyard maintenance and introducing trendy new features to the home such as an outdoor kitchen, fire pit, and seating area.”

Despite current inventory strain, Ms. Ready foresees an optimistic 2024 for housing as interest rates drop, opening the door for more first-time millennial and Gen Z homebuyers to enter the market.