The seller’s market is starting to weaken in Arizona, according to the latest Cromford report we saw. With that being said, if you are thinking about selling, you might want to jump at the chance now. Don’t just take our word for it, take a look at the information we have collected for you below. Then, you can make the best decision for your situation.
Potential Reasons For the Weakening Numbers
- Buyers are getting fatigued from bidding wars and loosing out on so many offers. This is causing more and more buyers to stay put for now.
- The prices are so high that many buyers are getting priced out of the market. The rising home prices are making it hard for some to qualify.
- If the interest rates go up, then buyers have to spend more to get what they want.
Another Expert Opinion
According to one of our partners, Tammy Fiske-Schulze with Brightside Mortgage LLC, “While we do not expect interest rates to increase this year, we do anticipate rising rates over time. Based on political and economic factors, inflation is going to happen. The US Dollar is going to go down in value. While it is not exactly cause and effect, there is a direct correlation between inflation and rising mortgage rates. Historically, when we have seen this happen, we have seen rates jump up more than 1% in a 4 month period, which means what may have cost $1300/month in April could cost $1500/month in August. That is just based on increasing mortgage rates – that doesn’t even factor in risking home prices. That $200/month difference makes a difference of about $40,000 in purchasing power. That means that in April, a person may have been able to afford a $300k mortgage but in August, they may only e able to afford a $260k mortgage. Inventory is rising, demand is dropping and rates are still super low…there is a limited amount of time to take advantage of this opportunity.”
Here are the reports we received from Tina Tamboer, Senior Real Estate Analyst with The Cromford Report. These show the slight weakening in the Arizona Real Estate market over last year. This is why we are suggesting people act now if you want to sell your home. Feel free to reach out to any of us at Success Real Estate Group anytime with questions or if you would like to have a free market analysis on your home. We can be reached at 480-945-1111 or firstname.lastname@example.org