Many observing the current housing climate have noticed a spike in listing prices, both locally and nationally. Shockingly, Arizona even topped the chart of home price growth at 33% late last month! Let’s delve into the factors that are creating this challenging landscape we’re experiencing today:
Consistent Housing Shortages
Between many Arizonans entering their prime homebuying years and others moving to the Valley, demand is at an all-time high. Although many homebuilders are upping their build plans or expanding their reach to the Phoenix metropolitan area, inventory is unable to keep up. Further, a shortage of raw materials and available labor makes the situation more of a challenge.
Big Investors Making Waves
iBuyers such as Zillow, Offerpad, and Open Door have placed high bets on the Phoenix area, some overbuying homes in an already strained market. While home sellers have benefitted from this surge of competition, average homebuyers are hard-pressed to outbid them. And, although Zillow has recently been shown losing on investments, it is unclear if other iBuyers are experiencing the same.
Rising Costs Pressuring Buyers
Some buyers are dropping from their search altogether due to increasing listing prices and mortgage costs. However, some home sellers are encountering resistance from potential buyers due to unfavorable policies. With overall home sales beginning to slow since August, pricing may begin to shift as we approach the year’s end.
If you need an ally during this challenging time, I’m here for you! Whether you’re searching for the right space or want to make your home stand out in the current market, feel free to reach out to me at 480-355-8645. Together, we can discover options that are right for you.
