Phoenix/Scottsdale Real Estate Market Update – January 2019
Is Phoenix/Scottsdale transitioning to a Buyer’s Market?
We have become accustomed to a hot, growing market that strongly favors sellers. Now that it is cooler, contracting in volume and moderately favoring buyers, there is some talk that we are entering a Buyer’s market. But this perspective is not agreed upon by all because a decline in demand does not necessarily constitute a Buyer’s market.
A Buyer’s market is indicated by supply that is higher than demand and decreasing closed sales prices. In Phoenix and Scottsdale, the supply is still very low, and there is little indication that the supply will increase.
Most indicators that impact the housing market are in normal to good ranges. Compared with California and other west coast metro areas, Phoenix/Scottsdale is still very affordable. There has been no decrease in loan approval rates and population growth is increasing faster than the number of homes. Owning a home still makes better financial sense than renting (unless you expect to own the home for less than 3 years). None of the conditions for closed prices to fall are currently in effect.
The numbers are more reliable than emotion, and the numbers indicate more of a cooling down rather than a downturn – perhaps a return to a balanced market.
*Every Tuesday, we participate in a conference call with our broker and fellow colleagues to discuss the local real estate market, the current real estate news and the latest statistics. Our market update is based on this group discussion and information provided by The Cromford Report, a company dedicated to local real estate market statistics.
News from NAR - National Association of Realtors
- Instant Reaction: Retail Trade Sales, April 15, 2021
U.S. advanced estimates of retail and food service sales for March 2021 recovered from the pull-back in February 2021 as consumer purchases exceeded expectations.
- Instant Reaction: Mortgage Rates, April 15, 2021
The average rate on the 30-year fixed rate home loan fell for the second straight week to 3.04% from 3.13% the previous week.
- 13 Months Later, Where Do Mortgages Stand?
According to the Snapshot on Race and Home Buying in America, which uses Census ACS data, the homeownership rate for Black Americans is 42%, Hispanic Americans 48.1%, Asian Americans 60.7%, and White Americans 69.8%.
- Instant Reaction: Consumer Price Index, April 13, 2021
Over the last 12 months, the inflation rate rose 2.6%, compared to 1.7% in February and 1.4% in January, respectively.