What’s the latest news from our Greater Phoenix area market? Here are the year-over-year numbers from September:
-The number of new listings decreased 5.2% from 9,646 to 9,145.
-The number of active listings decreased 5.5% from 19,832 to 18,754.
-The number of sold listings decreased 5.9% from 7,509 to 7,067.
-Our supply of inventory increased from 2.64 months to 2.65 months (though it’s increased 47% in the last four months)
In other market news, the Federal Reserve raised interest rates again this past week, and they’re expected to raise them one more time in 2018, up to three times in 2019, and once more in 2020. As interest rates rise, home affordability becomes a problem—a 1% increase in rates decreases homebuyers’ purchasing power by 10%.
If you have neighbors who’ve put their homes on the market, you might notice some of them reducing their price to get their property sold. This isn’t happening in all markets, but it’s starting to become a larger trend. In fact, we’re averaging 2,200 price reductions per week here in the Valley.
What does this mean for buyers and sellers?
If you’re thinking of buying, now would be a great time to do it. If you’re thinking about selling, now is also a great time to make your move so that you can lock in a great rate on your new home before they rise even higher. If you buy a home and rates drop, you can always refinance.
As always, if you have any other questions about our market or you’re thinking of buying or selling a home, don’t hesitate to reach out to me at (602) 738-9943. I’d love to help you.