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: Mortgage Rates, August 13, 2020
Mortgage rates bounced up lightly this week to average 2.96% from 2.88% the prior week, but this should have virtually no impact on home buying.
Housing Affordability Slips in June 2020 as Median Family Income Falls
Affordability worsened in June compared to May as the median family income slightly declined by 1% while the median home prices rose by 4%.
Metro Home Prices Grow in 96% of Metro Areas in Second Quarter of 2020
Home prices have held up well, largely due to the combination of a very strong demand for housing and a limited supply of homes for sale.
Instant Reaction: Jobs, August 7, 2020
Jobs are coming back, with 1.8 million net new additions in July, bringing the total to 9.3 million over the past three months as the economy has steadily reopened.