Market Balance
“The bad news is nothing lasts forever. The good news is nothing lasts forever” J. Cole
The 2023 Housing Market is closing out in “balance”. Of course that is a bit misleading – as there are parts of the valley favoring buyers (think outlying areas such as Buckeye, Maricopa, Pinal County) and others favoring sellers (Tolleson, Anthem, Apache Junction, El Mirage, Sun Lakes, Chandler, Laveen, and Fountain Hills).
What will 2024 bring? Interest rates seems to be the crystal ball that will answer that question. December is seasonally the slowest time of year for real estate. But rates declining from 8.0% in October to 7% has presented an opportunity for buyers to buy without too much competition and from sellers motivated to sell despite the holidays. That drop in rates spurred demand and stopped the market from sliding in to a buyer’s market. If rates drop below 7% in 2024, we could well see the market shift to favor sellers again. As Tina Tamboer of the Cromford Report states:
“The rapid decline of rates is preventing Greater Phoenix from dropping entirely into a buyer’s market at this stage, which is causing analysts to question how long the opportunity will last. The combination of a sustained balanced market and the weakest month of the year seasonally means that the best thing buyers can do is stay vigilant in their search for a home and take advantage of this quiet time. Once the New Year begins, the market could heat up quickly.”
For sellers selling now, the best advice is to price properly, spruce up your home to its best showing condition, and assist buyers with closings costs. As the Cromford Report sagely states: These are the markets where quality marketing, exposure, and agent representation truly make a difference.
We hope you have a happy and joyous holiday season and New Year. We look forward to serving you in 2024.
Russell & Wendy Shaw
(Mostly Wendy)