Hows the Market?? Here is your Phoenix / West Valley area Real Estate Market Report for August 2022. Well its no secret that the market has cooled down and interest rates have hiked up, but what does that look like in the Maricopa real estate market? Well the rise in rates have definitely lowered demand, causing inventory to rise. As I always say, Real Estate is still a commodity driven by supply and demand so let’s take a look at the inventory supply.
We have seen some pretty big jumps in inventory in the west valley, Maricopa county up 53.93 on August 2021. Tolleson increased 159.32% over same month last year, Buckeye up 156.92%, Avondale increased 133.33%, Waddell 125.64%, Peoria increased 90.32%, Surprise up 88.41%, Laveen up 87.18%, Litchfield Park up 78.65%, Goodyear up 71.62%, Glendale up 62.50%, El Mirage up 51.52%, and Phoenix up 39.08%.
So what does that all mean? Most west valley cities are in a more “balanced market” no longer the strong sellers market we saw the previous few years. So what is all this doing to prices? I am sure you may be seeing price reductions, does that mean the market is busting? Well for right now, that answer is a very clear no, we are seeing price corrections for sure, but the bottom is not falling out.
Home values are still holding steady over last year. Take a look at the chart most west valley cities are still showing an increase in median home prices over the August 2021, most are still having double digit increases.
Obviously we have no idea what interest rates are going to do and although home prices are settling down, buyers are seeing that the mortgage payment is far higher for the same loan amount than it was with rates just a few months ago. The rates are jumping up and down daily, so it,s never been more important than ever to have a great lender on your side that is watching the rates daily. If you don’t already have an awesome lender, I highly recommend Jennifer Gokool at Castle and Cooke Mortage, (623) 512-4087.
If you have been on the fence about buying, perhaps gave up on the multiple offers and feeding frenzy market we had, well good news, theres more homes for you to choose from, most cases you are not having to deal with a bidding war and over 13% of the closed sale last month had sellers concessions. Sellers concessions are a great way to buy down the interest rate for a more affordable payment. Competition is low, and sellers are motivated, its a great time to get a good deal on a home, don’t wait for spring like everyone else to buy!!
New build construction permits dropped -49% from March to July, this is a good thing that the builders have adjusted quickly so builds will not over supply the market.
Arizona Labor force has grown by 191,877 people, thats 5.7% up from the lowest in April 2020 pandemic.
All 11 major sectors of labor force recorded job gains, high end manufacturing, semiconductors, Construction, transportation and utilities, health care & education, and many companies bringing their industry to Arizona is going to keep housing demand high.
Click to enlarge Market Report
Tags: Buyers, Market Condition, Market Reports, Sellers