Why a Balanced Market feels so Unbalanced<\/p>\n\n\n\n
Most buyers and sellers would be surprised to hear that the greater Phoenix real estate market is \u201ca balanced market\u201d at the moment.\u00a0 But it\u2019s true.\u00a0 Why doesn\u2019t it feel that way? \u00a0We think it feels unbalanced primarily for 3 reasons:<\/p>\n\n\n\n
1. Appreciation has been strong since 2015 making the 2022 price correction feel awful to sellers by comparison.<\/p>\n\n\n\n
2. The number of transactions (market shrink) are much lower than normal as buyers and sellers headed to the sidelines. Sellers feared equity loss, buyer\u2019s feared increasing rates.<\/p>\n\n\n\n
3. Human emotion \u2013 it\u2019s not what\u2019s true but what feels true. Skepticism is the current market emotion.<\/p>\n\n\n\n
Message to sellers<\/strong>: Now is a good time to sell if you have owned your home for 2 years or more. The Cromford report gives these appreciation numbers for those sellers : \u201c The long-term appreciation rates for homes in Greater Phoenix are as follows using January sales to date: 25% for 2yrs., 50% for 3yrs., 63% for 4yrs., 70% for 5yrs., and 86%+ for 6yrs or more.\u201d Balanced markets mean little to no downward pressure on pricing. If interest rates rise, we could see a shift back to the buyer\u2019s market that puts pressure on pricing again.<\/p>\n\n\n\n Message to buyers<\/strong>: The buyer\u2019s market lasted for 4 weeks \u2013 November\/December of 2022. Interest rates have now settled back to below historic numbers. In a balanced market, competition amongst buyers is minimal (i.e. no bidding wars). Prices declined around 15% in 2022 \u2013 providing buyers a better value. Don\u2019t be caught waiting for further price drops when the market numbers don\u2019t support that happening. As we mentioned above, balanced markets mean little to no downward pressure on pricing. Also, interest rates are still subject to change. They go up fast, and down slowly. Take advantage of the relative (and perhaps temporary) interest rate stability.<\/p>\n\n\n\n None of us can predict the future. But at the moment \u2013 this market is a green light for both sides.<\/p>\n\n\n\n Russell & Wendy Shaw<\/p>\n\n\n\n (Mostly Wendy)<\/p>\n","protected":false},"excerpt":{"rendered":" Why a Balanced Market feels so Unbalanced Most buyers and sellers would be surprised to hear that the greater Phoenix real estate market is \u201ca balanced market\u201d at the moment.\u00a0 But it\u2019s true.\u00a0 Why doesn\u2019t it feel that way? \u00a0We think it feels unbalanced primarily for 3 reasons: 1. Appreciation has been strong since 2015 […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1303","post","type-post","status-publish","format-standard","hentry","category-real-estate-market"],"_links":{"self":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1303","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1303"}],"version-history":[{"count":2,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1303\/revisions"}],"predecessor-version":[{"id":1306,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1303\/revisions\/1306"}],"wp:attachment":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1303"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1303"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}