This months market update shows the metro Phoenix-Gilbert Real Estate housing market remaining in a bit of a holding pattern while everyone tries to figure out what the overall economy and interest rates will do next. Clear indication from the Federal Reserve is that the policy of raising interest rates in an attempt to bring down inflation will remain the approach for the short term at least. Given the latest data on national employment levels and prices for goods and services, it’s unlikely that approach will change any time soon. Rising rates are having an impact on our local housing markets as expected. We went from “red hot” last spring to “cool at best”. Price points for the most part have leveled off, except in some of the more outlying areas where values continue to take a hit. Today we show 14,000 active listings on our mls with about 9000 under contract and some 6000 or so have closed in the last 30 days. Overall, the buyers have more choices and don’t have to do anything crazy to secure a home. Sellers have had to adjust expectations and, in most cases, exercise some flexibility on terms that that have not had to for some time.
If you are shopping for a home, there are opportunities in just about all markets, including Gilbert. You may find sellers willing to negotiate on price, contribute to buyer closing costs or pay to buy down a buyers interest rate. If you are selling, preparation of the home is more important that ever and pricing should be measured against what has not sold, versus comparable sales. The details become more and more important for both buyers and sellers as we navigate this changing marketplace.
Our continued opinion on all of this is that the market will remain flat, or trend downward until inflation gets under control and interest rates adjust downward. It’s unlikely we’ll ever see rates like 2-3% again in our lifetime and we will all have to adjust to a “new normal”, likely somewhere around 4%. We do believe when the national economy shows more stability and Fed policy loosens some, that Arizona will be at the forefront of growth again. We are well poised to navigate a national recession if there is one and should come out of any downturn well.
Like always, every home and every situation is unique for both buyers and sellers. We specialize in personal representation of clients best interest in residential real estate sales and purchases, and would be honored to help you and your friends or family. We are honored to help you or anyone you know that could benefit from experienced professional representation.
Until next time friends!