For your latest Greater Phoenix market update, let’s look at the key year-over-year numbers from September:
- New listings decreased 1% from 9,151 to 9,223
- Active listings decreased 11% from 18,276 to 16,328
- Sold listings increased 13.4% from 7,071 to 8,021
- The month’s supply of inventory decreased 21% from 2.58 to 2.04 months
As you might’ve heard, the Federal Reserve recently reduced interest rates—a 30-year fixed rate is now around 3.75% and a 15-year rate is around 3.13%. This is super low, which is why we’re seeing a bump in sales. Buyers want to lock in low rates right now. As you can see from the stats above, inventory is also low. If we were in a balanced market, we’d have roughly 30,000 to 35,000 homes on the market.
Since a lot of buyers want to lock in a low rate and sellers are having a hard time finding the next home they plan on purchasing, the market has stalled somewhat in the last six weeks. It remains to be seen what will happen next, because so much depends on the stock market, the strength of our economy, and whether rates stay low.
I hate to say it, but we’re addicted to low rates. If rates increase, the cost of mortgage payments rise along with them, and buyers start adjusting their prices downward. This means we’ll have to keep an eye on interest rates, the stock market, and the strength of our economy moving forward. Simply put, people buy homes when they have jobs.
At the moment, though, now is a great time to sell, so if you’d like to put your home on the market or you have any other real estate needs I can take care of, don’t hesitate to reach out to me. I’d love to help you.