If you're looking for a buyer's market, Buckeye, Queen Creek, and Maricopa will provide buyers with the upper hand when it comes to negotiating. Here is a look at the rest of the Phoenix metro area real estate market.
This chart shows you the Cromford Market Index (CMI).
CMI > 110 = Favors Sellers
CMI of 90-110 = Balanced Market
CMI < 90 = Favors Buyers
As you can see, Gilbert is on the cusp of a buyer's market and Surprise and Tempe could follow within days. This week, just 6 of the 17 largest cities in the Phoenix Metro area are statistically in a seller's market. Two of those cities, Goodyear and Avondale, could move into a balanced market shortly.
Overall, the demand for the entire Phoenix Metro area is currently at 81%. Supply is at 65.6%. Supply has increased significantly during the past 3+ months. In late April 2022, supply was at 24% and demand was at 108%. Higher interest rates are the primary reason demand has fallen. With fewer sales, supply has been able to accumulate.
Bottom Line: Emotions are crashing, not the real estate market. The market is cooling quicker than anticipated partly due to an overreaction to higher interest rates.
For buyers, you finally have more homes to choose from and less competition. Explore your financing options. Ask about loan programs such as a 2/1 Buydown to obtain a lower interest rate. The 2/1 Buydown allows you to take 2% off the current interest rate for the 1st year, followed by 1% off during the 2nd year, then the original interest rate resumes thereafter. If interest rates drop, buyers can refinance to lock in a lower permanent interest rate. And the BEST part is many sellers are currently contributing towards the buydown fee.
For sellers, gone are the days when homes sold over a weekend. Now you can expect to wait about 21 days before you have an executed contract. Of course, it depends on your location and price point among other factors. A conservative pricing strategy typically results in more showings and shorter days on the market. Decluttering and first impressions go a long way. Be prepared to make repairs but don't jump the gun until you confirm which ones will give you the results you're looking for. If you also need to buy a home, there's a great possibility you can purchase a home with a contingency to sell your home first.
Cindy Nelson is an Arizona native and Realtor with Realty ONE Group and serves the Phoenix Metro area and the White Mountain region. Cindy is a subscriber to the Cromford Market Report and an active Trusted Advisor University member.
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