MARKET UPDATE JUNE 2022
Welcome to June... here locally we are wrapping up graduations, school years and summer is upon us! So what does that mean for the market, the future & opportunities in real estate? The video will hit on all of the subjects and more:
The real estate market in Arizona, specifically the Phoenix Valley has remained strong, remained a seller market and the demand has remained constant. However we have seen more homes coming to market, in fact we've seen over 40% increase in homes for sale!
Some have called this a shift, where as here in Arizona it is typical of the season. Many people are preparing for a move and list their homes while most buyers are distracted by graduation, school year end and Memorial Day. What it does mean is there are more options for buyers BUT we still have just about 1 month of inventory. This is still very low inventory however it is the best we have seen for buyers in over a year! Here is a graphic to show that purchases and sales have stayed steady but we have seen more homes listed:
Bottom line: It is still a sellers market, purchase and sales remained steady in a traditionally slow time. More homes are listed, buyers have a great opportunity NOW but expect many other people to enter the market now that we are done with school year!.
WHAT DO WE EXPECT IN THE NEAR FUTURE?
This is the most common question we get so here it is... The last year has been an absolute FRENZY with huge appreciation and extremely limited inventory. In the coming year we expect it to be a HOT market with still limited inventory but due to appreciation and rising rates some will simply be priced out thus a minor slowing. That said, it will remain a sellers market, there will still be (less) price appreciation and rates will continue to rise. WE DON'T THE INVENTORY FOR THIS TO CHANGE ANYTIME IN THE FORESEEABLE FUTURE: which means there are also some great investment opportunities in rentals! But for the typical home owner/purchaser...
A. SELLERS will remain in control but need to price appropriately.
B. BUYERS will have some more options but should act NOW to save money on both price & interest rates. Especially if looking to move up from current home.
EXAMPLE: Based on average of top economists, prices expect to rise 8-10% this year...
2022 VS 2023
Current Home Value $400,000 $440,000
Home you want 500,000 $550,000
Difference $100,000 $110,000
So waiting will cost an additional $10k in this example BUT interests rates are also expected to RISE which will cost even more in your monthly payment!
Most important point! Regardless of YOUR goals, if it includes any real estate decision please reach out to us so we can give you professional advice based on real numbers and economic data that is local, accurate and meaningful to YOUR situation.
Finally we want to thank and honor all who have and do serve in our military, please reach out to see how we can help you make the most of your veteran benefits. Also if you are a First Responder we have a special program to serve those who serve our communities:
Thanks to our partners who make this possible:
The Drew Team at SWMR is:
Robin & Steven Drew
A professional team that can negotiate and win for you but remains small enough to treat you like family!