Now that the holidays are behind us and 2023 is here, you may be wondering what we can expect for the greater Phoenix real estate market this year.
Here’s a quick snapshot of where we find ourselves today:
Housing Inventory
As of this morning, the housing inventory has dropped back down to 16,206 Active listings from the recent high of nearly 21,000 listings back in October. The combination of inventory and buyer demand is currently in balance but may change quickly as news of falling interest rates, seller concessions, and lender incentive programs reaches home buyers.
Interest Rates
As inflation continues to soften, we have seen mortgage rates inch down to the low-to-mid 6% range from the highs in the mid 7% range last quarter. That’s good news for both buyers and sellers. As inflation continues to decline, interest rates are expected to come down to the low-to-mid 5% range in the coming months and remain close to that range for the foreseeable future.
That said, we are currently in a sweet spot between affordable mortgage rates and a time when sellers have been offering closing cost assistance and interest rate buy-down incentives which may disappear as demand ramps up this spring. Additionally, if inventory remains low, we may again see quickly rising prices this season.
Current Trends
As hot as the market was through June last year, we have been following seasonal trends since last August/September. As it does each year, activity in the 4th quarter slows and prices recede as many buyers and sellers take a break for the holiday season.
The new year typically sees new inventory as buyers and sellers begin to come back to the market. We are already seeing evidence of this today, but the surge typically starts around the 3rd week of January and continues to gain momentum as we head into spring.
What Does This Mean for You?
The number one question I get is “How’s the market?” The answer to that question is always the same:
It depends whether you’re buying or selling. It depends on what you are looking to accomplish, your financial position, needs and goals. Say you’re at the grocery store and you meet an accountant. If you ask them “will I be getting a refund this year?” They would say something like: “I don’t know. Let’s schedule an appointment so we can take a look at your situation.”
It’s the same with real estate. If you’re thinking about buying or selling a home this year, let’s schedule some time to look at your situation and put a solid plan together to help you reach your real estate goals.
Call today. You can contact me by phone, text, or email.
