Important information you need to know about home prices in Phoenix.
Are you wondering why home prices haven’t crashed despite recent shifts in the market? If this confuses you, especially after years of rapid price appreciation and a rise in mortgage rates, you’re not alone. Many people were expecting to see prices plummet, but as it turns out, that’s not exactly what’s happening.
According to Lawrence Young, the chief economist at the National Association of Realtors, prices will remain steady in most parts of the country, with only a minor change in the national median home price. This is because of supply and demand. The key factor that’s limiting how low home prices will go is the lack of inventory. There simply aren’t enough homes available on the market to meet the demand.
“Home prices haven’t plummeted like they were expected to.”
This lack of available homes is driving up prices, even though we’re no longer seeing the same buyer frenzy we saw during the pandemic. With more sellers holding onto their homes due to the current equity cushion, we’re not likely to see a significant rise in inventory this year. Also, with low inventory and plenty of equity cushion for sellers, we’re not likely to see a significant drop or rise in home prices anytime soon.
What does this mean for you as a buyer or seller? First, it’s essential to work with a trusted real estate agent who understands your local area and can navigate the current volatile market. We can help you find the best deals and opportunities, even in a tight market. Second, if you’re thinking about selling your home, keep in mind that you have plenty of equity right now. That cushion will help protect you from distressed sales like foreclosures and short sales, so you can take your time and find the right buyer.
Finally, if you’re a buyer looking for a home, don’t give up. While the lack of inventory is frustrating, it’s not impossible to find your dream home. We can help you be strategic and creative in your search. If you have any real estate questions, feel free to call or text us at (602) 920-0306. You can also send us an email anytime. We appreciate your friendship, referrals, and trust.
