Why Right Now is a Great Time to Buy in The Greater Phoenix Area
High prices and elevated mortgage rates have pushed many Phoenix buyers out of the market in the last few months. However, recently released data shows the market is shifting in buyers’ favor.
Even with higher mortgage rates, now is an excellent time to buy for a few reasons.
Metro Phoenix Inventory is Growing
Currently, inventory for the greater Phoenix area is higher than we have seen in a long time. September data shows 18,000 active listings, giving buyers much more to choose from.
In week one of 2022, there were only 5,000 active listings in the entire Valley. February and March of this year were crazy buyer frenzy months. Today, there are a variety of homes to view. Inventory is growing, creating a balanced market.
We are in a Balanced Market
What does a balanced market mean for buyers in the Valley?
It means that seller concessions have returned.
Seller concessions are anytime a seller gives something monetarily to the buyer during the transaction.
Seller concessions usually contribute to closing costs, meaning buyers bring less cash to the table when closing or buy down their mortgage rate at the closing table, which can make monthly payments more affordable over the long term. (Image Source: The Cromford Report)
In the week ending September 12, 2022, we saw 14% of contracts with seller concessions – this number rose from zero.
Until recently, it was buyers making concessions. Buyers were waiving appraisals or bidding on homes at or above the asking price even if they were in need of repair.
Those days are gone.
Buyers are now getting what they need from a home, along with sellers throwing in extras to sweeten the deal.
Seller concessions are part of a balanced market, a normal market.
Price reductions are happening in the Valley.
In May of this year, prices were sky high. Since May, we have seen home prices decrease by 6.7%. (Image Source: The Cromford Report)
When the Valley was in a buyer frenzy, many buyers were making escalation clauses and going over the list price, which is not happening anymore. In a normal market, you may pay even below the list price.
Right Now is an Opportune Time for Buyers
Typically, September through December is the best time to buy. And in January, when the snowbirds arrive, it is selling season.
Right now, presents an excellent opportunity for all those buyers that have been sidelined due to our recent market. Currently, we find ourselves in a balanced market, able to negotiate and give buyers some power back.
If you would like more information about buying a home or have questions about the market, we would love to chat.
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