08 Feb Phoenix Housing Market Shifts in Favor of Sellers
The Phoenix, Arizona housing market has seen a significant shift in recent months, with the market now favoring sellers. This is a welcome change for many homeowners who have been waiting for the right time to sell their homes. The shift in the market is due to several factors, including a low supply of homes and high demand from buyers.
Low Supply of Homes:
The supply of homes available for sale in Phoenix is currently still historically low. This is due to several factors, including a decrease in new construction and a cool down from the record-breaking price increases we’ve seen in recent years, which has deterred some homeowners from putting their homes on the market. The result of this low supply is that buyers are facing more competition for the limited number of homes available, making it easier for sellers to sell their homes quickly and with less negotiations.
High Demand from Buyers:
Despite rising interest rates, the lower real estate prices have been enticing buyers back into the marketing who were sitting on the fence for quite some time. In fact, pending home sales increased by 43% last month according to Cromford.
With a low supply of homes and demand increasing from buyers, the Phoenix housing market is becoming increasingly competitive. We’re starting to see lower seller concessions as the buyer demand heats back up. This is great news for sellers who can expect increased net profit on the sale of their home.
On the other hand, buyers may have to be more aggressive in their negotiations and be prepared for less concessions from the seller.
In conclusion, the Phoenix, Arizona housing market is quickly recovering as emotions have shifted from fear and panic to optimism and relief considering the new favorable market data. This is a great opportunity for homeowners looking to sell their homes and take advantage of the current market conditions. For buyers, it is important to be prepared for a more competitive market and be ready to act quickly when the right home becomes available.
Looking to Buy or Sell?
Elise Fay, REALTOR®
Top 1% in Phoenix Metro