With decrease of interest rates in play, Phoenix housing market likely to evolve in New Year, experts say
But while data points suggest a lackadaisical state of economic affairs, Mr. Leiber reminds interest rates appear destined to continue to dwindle in coming months.
“Nobody wants to buy or sell during the holiday season,” he said. “If we had seen that 1% drop two months ago, you would have seen a flurry of buyers back on the market. I believe that if we continue this trend, which many economists say we will, it will bring buyers back to the market first.”
According to data provided by Phoenix Realtors, pending sales are down 14.1%, and days on the market jumped from an average of 37 through November 2022 to 65 in the same 11 months of 2023 across the Valley of the Sun.
Here are the numbers in Phoenix:
For Mr. Leiber, who is a managing broker at Realty Executives, says while sales opportunities in the market are fewer, motiviated buyers and sellers are finding ways to get deals done.
“Motivated home buyers and home builders are offering greater concessions this year than typically seen,” he said. “Usually, there’s an average of $4,500 in concessions on a home, but this year, we’re seeing concessions worth $10,000 and more, including interest buydowns. That saves a buyer hundreds of dollars a month.”
About six months ago, the Phoenix housing market was seeing increases in price valuations based on dwindling homes for sale and explosive population growth meanwhile in December 2023 prices of home have cooled.
In places like Tempe, Chandler, Glendaleand Avondale housing prices continue to see a leveling out.
Categories
Recent Posts
