This happens every fall in Metro Phoenix, a softening in the market. For savvy buyers, this is the time to find their dream home.
Home Sales in Metro Phoenix Below Last Year’s Level
Home sales in Metro Phoenix are below last year’s levels due to a lack of supply. Additionally, home values are appreciating at a slower pace.The Metro Phoenix Experts’ Opinions
The Metro Phoenix market has definitely softened. This softening is typical in the fall and winter. These seasons typically favor the Buyer.
However, according to two chief economists in the industry, we are a long way from a market that totally favors the purchaser:
Dr. Svenja Gudell, Zillow Chief Economist:
“These seller challenges don’t indicate we’re suddenly in a buyers’ market – we don’t expect market conditions to shift decidedly in favor of buyers until 2020 or later. But buyers certainly are starting to balk at the rapid rise in prices and home values are starting to grow at a less frenetic pace.”
Danielle Hale, Chief Economist of realtor.com:
“The signs are pointing to a market that’s shifting toward buyers. But, in most places, we’re still a long way from a full reversal.”
In addition, Pulsenomics Inc. recently surveyed over one hundred economists, real estate experts, and investment & market strategists and asked this question:
“When do you expect U.S. housing market conditions to shift decidedly in favor of homebuyers?”
Results of the Survey, “When do You Expect US Housing Market Conditions to Shift?”
Only 5% said the market has already shifted. Here are the rest of the survey results:
Bottom Line
The market is beginning to normalize but that doesn’t mean we will quickly shift to a market favoring the buyer. We believe Ivy Zelman, author of the well-respected ‘Z’ Report, best explained the current confusion:
“With the rate of home price appreciation starting to decelerate alongside the uptick in inventory…we expect significant debate about whether this is a bullish or bearish sign.
In our view, the short-term narrative will probably be confusing, but more sustainable growth and affordability will likely be the end result.”
