How’s the Phoenix Real Estate Market started off in 2022?
Has the trend of multiple offers within 48 hours waiving appraisals and inspections continued through the first half of 2022? What has the increase in interest rates done to buyer demand in the Phoenix real estate market? And has this affected home sale prices throughout the valley. To find out the answer to these questions, read this 2022 Phoenix market review.
Phoenix Market Real Estate Trends
The Phoenix real estate market followed a predictable trend in the first quarter of 2022. Then along came the second quarter and increasing interest rates that are supposed to tame runaway inflation. Buyers were struggling with affordability issues due to high home prices and the increase in mortgage rates was the last straw. Mortgage applications saw a decrease while buyers saw a 12% increase in mortgage payments for each 1% increase in interest rates!
Watch the video below to learn more about what happened in the first year of 2022.
Homes for sale are on the rise
As buyers pull back and homes take longer to sell, the natural result is there are more homes on the market. The change has been dramatic and significant. The increase in the number of homes for sale has increased 5X and 6X in some cities. We are now back to inventory numbers that we saw around 2015 & 2016. Buyers have many more choices compared to the first quarter of this year.
What about Phoenix real estate prices?
With the increased supply, and buyers having more choices sellers are find themselves competing for the existing buyers. One example is the number price reductions that have taken place in the last month. In some cases, over20% of the existing homes on the market have had a price reduction in a week. The median Phoenix sales price peaked in May and have seen drops in both June and July. August numbers will most likely show the same trend.
When you’re ready, and want to be notified of homes automatically, click on receive properties as they come on the market. For any more questions, about the 2022 Phoenix market review, please call me at 480-326-8571
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