Buyers

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 1^st year, followed by 1% off during the 2^nd 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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TRUE STORY! Take a guess at how much one buyer paid for a Phoenix area home that once sold in 2014 for $379,275 then find out what the best tool is for buying a home in this current seller's market.

Remember, knowledge is power.  There is a report available that will show you what the median amount paid over list price is (current as of the last 30 days). This is helpful when competing with multiple offers. This is free for the asking - no strings attached. 

As a Trusted Advisor University member and a subscriber to the Cromford Report and MLS, I can provide you with all the data you need to help you understand the current market in the Phoenix area, whether you're buying or selling. Here's how you can reach me ... Cell: 480-535-0060 or E-mail cindy@myeasyhomesearch.com .

You may be shopping for a new home or perhaps you are curious and want to take a peek at the latest and greatest home decor. Whatever the reason, you need to take a few things under consideration before you view any model home.  I know, I know … you may have no intention to buy, so what difference does it make?  Well, I know a few people who had that same thought, so they decided to just take a look. Well, unbeknownst to them, it was love at first sight when they discovered their dream home. So why not give yourself the benefit of the doubt and protect your own interests?

Don't be fooled.

First, you need to think about who is representing you before you walk through the door of any model home.  Without your own agent, the builder's agent will assist you.  This means you won't receive any representation.  The builder's agents are hired to look out in the best of interest of the builder, not yours.  Despite how friendly a builder's agent may be, that won't make any difference. They will always only represent the builder's interests.

Your first visit to a model home is an important one.

When you enter a model home, the builder will require you to register first.  If your agent is not with you at this initial visit, then you waive your right to bring one later. Your agent does not have to be with you on every visit, just the first one.

Does it really matter?

You may be wondering what is the benefit of having your own agent.  Your real estate agent has a fiduciary responsibility to protect and promote only your interests.  As your Realtor, I would advise you throughout the process as well as provide data and resources to help you with your decisions.  I will also give you the seller's perspective when you are selecting your lot, choosing upgrades, and making other decisions.  There's always a possibility you might sell this home one day, so your choices will be a factor at that point. Additionally, I will be there to assist you during your final walkthrough. The best part is, you won't have to pay for my service.  The builder is required to pay for your real estate agent's fee, which is why they only give you one chance for representation.

Honey, stop the car!

So you're out driving around and you just want to take a quick look at a few model homes.  I know many of you feel that you don't want to "bother an agent" since you're really not even sure this is the one.  Please, put this thought aside.  This is what real estate agents do.  They welcome the opportunity even if it turns out you have no desire other than just dreaming about "the one".  At the very least, here's what I recommend.  Call me first.  If I'm not available to meet you there, there is a possibility I can pre-register you with the builder prior to you walking through their entrance.  I will let them know I won't be there, but I am representing you.  I'll also text you a copy of my business card in case they ask for one. And, of course, I will make plans to meet you there later should your visit become something more than just curiosity.

Bottom Line

Buying a home is likely the biggest purchase you'll ever make.  Don't jeopardize your chance of having an advisor by your side who will protect and promote only your interests.  Have a real estate agent with you when you look at any model home.

Cindy Nelson is an Arizona native and Realtor with Realty ONE Group and serves Phoenix Metro and the White Mountain region.

Have you ever driven by a home listed for sale and asked yourself these questions? 

"Hmmm, I wonder what that house sells for?"   "I wish I knew what the inside of this home looks like?"  "Is this a 4 bedroom home?"

The easiest way to retrieve the listing details is by using a FREE phone app available through Realty ONE Group.  This free app pulls the data directly from the MLS listing. It also uses the GPS on your phone, so it's very handy if you're driving around a neighborhood looking for homes for sale.  With this app you can view:

• Photos
• List price
• Square footage
• Home details (# of bedrooms, bathrooms, etc.)
• Property description
• Interior and exterior features
• Property tax information
• Utility information
• And more!

Use the filter to fine-tune your search and save your favorite listings.  It's a great way to track the market and learn about new and reduced-priced listings, too.  You can also find a list of available open houses.  To access this FREE app:

Text ONECINDYNELSON to 855-602-1700 to add this app to your phone.

Cindy Nelson is an Arizona native and Realtor with Realty ONE Group and serves Phoenix Metro and the White Mountain region.