The housing market in Metro Phoenix has reached an equilibrium not seen since 2014, according to recent data. While some West Valley cities such as Surprise, Goodyear, Buckeye, and Litchfield Park remain in a buyer’s market, other areas within the metro still lean towards favoring sellers. This overall picture of housing stability was highlighted in a report by Tina Tamboer, a senior analyst at The Cromford Report, and shared during a housing webinar yesterday, as reported by ABC15.
Meanwhile, a separate analysis noted by the Zillow market report confirms that the advantage has slipped from sellers' grasp not only in Phoenix but on a national scale, with July marking a substantial shift as the Zillow market heat index nudged into neutral ground, the Zillow market report uncannily coinciding with the Cromford Report's analysis both providing a coherent narrative on current market trends; furthermore, Skylar Olsen, Zillow's Chief Economist, suggested that if mortgage rates continue to soften, a marked increase in buyer activity could arise this fall, according to the report released by AZ Big Media.
It wasn't just Phoenix observing these changes; major markets like Denver, Pittsburgh, Indianapolis, and Louisville shifted to a more neutral territory, with Orlando joining the ranks of buyer-friendly major metros. This broader trend hints at a collective recalibration of the national real estate landscape where homes took, on average, longer to sell in July compared to the previous year, albeit still outselling pre-pandemic averages.
Coupled with this reduced eagerness among buyers is the statistical reality that inventory has increased approximately 25% compared to last year, signaling greater choices for prospective homeowners, though inventory levels still trail behind pre-pandemic standards, with Zillow's surveys showing that major life changes predominantly inspire home sales rather than market fluctuations; in addition, price adjustments arose as sellers lowered their asking prices in response to the challenge of appeasing budget-conscious buyers, more than 26% of homes listed received price cuts during July, the highest percentage for the month since at least 2018 when data collection by Zillow commenced, as per AZ Big Media.
As fall approaches, the housing market could experience an invigoration from the recent decline in mortgage rates. In late July, this reduction narrowed the monthly cost of owning to less than $200 over renting—a figure that has continued to contract into August, as mentioned by AZ Big Media. While these lower rates might nudge buyers toward ownership, the sway to sell among existing homeowners may not parallel, given the importance of life events over economical prompts.
