Getting back to basic economics, supply and demand continues to drive the housing market. According to the ARMLS June update, the supply and demand for AZ housing continues to be unbalanced and slightly favors buyers. YTD homes sales are down for the first half of the year, more inventory is Active on the market (current monthly supply of almost 4 months) and with many distressed sales (and investors buying distressed homes), the market changes quickly.
Many sellers are starting to wonder why their home is not selling as fast as they anticipated. The Avg. days on market is up to 83 while sitting just under 66 a year ago. So what gives? Well, for starters, home prices are up significantly higher then last year (up almost 10% year over year median). Interest Rates, while still very attractive, have moved up just slightly. So with the combination of higher prices, less buyers and moving interest rates; this equals fewer sales and longer time on market for actively listed homes.
That said, there still spells opportunity for both buyers and sellers alike. Many “Boomerang Buyers” (those that have been previous homeowners that were displaced due to short sales or foreclosure) are now re-entering the market. They have sat out of the market for the past few years and many are now eligible for financing under conventional and government loan programs. So buyers have many choices in today’s market, while sellers are getting a fresh pool of buyers to assist them with the sale of their home.
All in all – a great time to sell or buy in Arizona!