Phoenix Housing Market from "Insanity" to "Warm" August 2022
(Published on - 8/2/2022 2:00:47 PM)
The market has shifted from 'insanity,' to 'frenzy,' to 'hot,' to 'warm.' Houses not selling the first day they hit the market is no reason to panic.
This month's 3-minute market update looks at the numbers.
In nearly every recession over the last 50 years, interest rates rose at the beginning of the recession, but in order to come out of recession, interest rates were lowered to stimulate the economy. Last week's rate hike didn't immediately affect mortgage rates, but even at today's higher rates, some Sellers are offering creative buydowns to cover the interim until rates fall, expected around the end of 2022.
There are more licensed Realtors then ever in history, thanks in large part to restaurants and other service-industry closures at the onset of the pandemic. According to The New York Times on March 4, "As few as 10 percent of them will last long enough to make a full-time living selling homes."
CONTRACT RATIOS & OTHER DATA COMPARING FACTORS AFFECTING THE 2005-2008 HOUSING VALUES TO TODAY'S MARKET:
THIS MONTH'S LUXURY MARKET REPORTS:
“In short, despite increasing inventory levels and the slowing of sales transactions, experts are very clear that buyers waiting for prices to plummet to pre-COVID levels are unlikely to witness a nosedive any time soon.” Click here for link to the newest issue of the Luxury Market Report.
THE LOCAL MARKET AS VIEWED BY THE EXPERTS:
A look at the Supply and Demand during 2007-2009 as compared to today is inverted. The numbers just don't support a crash. Worst case could be a 10% decline in values, much of which would include those Sellers "testing" the market with very little desire to actually sell.
One thing remains constant and is even more true than ever: Your Home Equity is a significant asset in your portfolio and you deserve expert guidance. Don’t Discount Your Net Worth. Put Tenure in Your Transition. Is Now a Good Time to Buy or Sell a Home? Call Denise 602-980-0737, celebrating a 36 year career in Arizona Real Estate.
