Last 2 Months Dismal for Greater Phoenix Housing Market
The last 2 months have been dismal for the Greater Phoenix housing market, with demand fading sharply and supply growing at one of the fastest paces we have ever witnessed. Either trend would have been negative but with both coming together we have had a very chilly wind blowing through the market. For many weeks, we have been looking for some convincing sign of the relaxation of one or both of these trends. We have not found any. Instead, over the last week, the situation ha
Home Price Deceleration Doesn’t Mean Home Price Depreciation
Experts in the real estate industry use a number of terms when they talk about what’s happening with home prices. And some of those words sound a bit similar but mean very different things. To help clarify what’s happening with home prices and where experts say they’re going, here’s a look at a few terms you may hear: Appreciation is when home prices increase. Depreciation is when home prices decrease. Deceleration is when home prices continue to appreciate, but at a slower p
BREAKING NEWS...Federal Reserve Raised Interest Rates 0.75%!
The Federal Reserve just raised interest rates by the most since 1994, pushing its benchmark rate higher by 0.75% in a bid to slow inflation. This increase in interest rates will most likely slow demand even more than we have seen the past couple months. With slowing demand and growing supply, upward pressure on pricing is dissipating very quickly. This is best measured by the average price per sq. ft. The readings move at different points in the cycle. First to change are
AZ MLS Housing Supply Up 113% Over Last Year
For Buyers: Market conditions continue to get better for buyers undeterred by rising mortgage rates. Over the last 10 weeks, there has been a surge of new listings in every price point over $400K, pushing the supply level up 113% over this time last year. The surge in new listings is not happening under $400K, however rising interest rates have caused demand in this price range to decline. As a result, supply is rising on the low-end due to buyers pulling back, not excessive
AZ Housing Market in Downward Trend
A downward trend in the housing market was anticipated, but it wasn’t anticipated to be so dramatic and quick. The softening trend is now very well established, and momentum is strong. We will shortly be entering the third quarter, usually the weakest time of year for the Greater Phoenix housing market. Even in a good year, prices tend to drift lower during the third quarter. This year as we approach this quarter, supply between $400K and $1.5M is up 174% over last year and u
