Arizona real estate market cools as prices fall and inventory rises
Real estate market in Arizona cooling down
Realtors are saying the Arizona real estate market has cooled considerably to a rare buyers market as prices fall and inventory rises. FOX 10's Lauren Clark has the story.
PHOENIX - After a red-hot real estate market heated up in the pandemic, many are noticing a cooldown.
According to Zillow, the average home value in April is down 2.6% from last year.
Local perspective:
It’s no surprise to anyone that there has been a noticeable shift in the Arizona housing market as prices are starting to drop and inventory is starting to go up.
But the main question: Is this something temporary or something more long-term?
"This is an amazing home, built in 1925," said Realtor Sherry Rampy, showing off a colorful, 100-year-old home now on the market in the Ashland Place Historic District. "She also put in this amazing pool and spa!"
But even historic gems aren’t selling the same way they used to.
"About a month ago, it really slowed down," said Sherry Rampy, associate broker with Broker’s Hub Realty.
Seller Erin O’Shea describes the past few weeks.
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What they're saying:
"Um… It’s been interesting, that’s for sure," O’Shea said.
"We have seen the market shift," said Meredith Lane, a Realtor with The Gillette Group for 21 years.
Lane says this time of year is typically the busiest, but not this year.
"It’s not as busy. The open houses are emptier. The showings are quieter, and sellers are sort of wondering what is going on," Lane said.
With homes sitting longer on the market, prices are starting to cool. Still, buyers remain on the sidelines.
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Big picture view:
"I think they are sitting on the sidelines because interest rates are still high," Lane said. "I think they had wished and hoped that they would come down, and we don’t have a crystal ball — so we don’t know when that will happen. And then the economy news is all over the place."
What’s next remains anyone’s guess, but both Realtors stress there’s plenty of opportunity.
"I think this is a blip," Rampy said. "We are very rarely in a buyer’s market in Phoenix, in particular, being we have about 20,000 people net population growth every year, and we aren’t building 20,000 new homes."
"The ability to get a great house at a great time is now," Lane said.