Phoenix Real Estate Market- Why You Should Purchase a Home Now
Wading through information regarding the current conditions of the real estate market can seem daunting. There is often information about the market that seem contradictory, which creates a lot of confusion. But ultimately, for the Phoenix Valley, experts are advising that you should purchase a home now, if you are able to.
If you have been reading the Cusick Group blog for any length of time, you have heard us say that the markets are hyper-local. Often statistic used are National statistics, which are not helpful to the Phoenix market. We assure you that we have no idea how the market in Hartford, Connecticut is performing, and if their data is being combined with the Phoenix metro data. Additionally, the Phoenix Metro area, which includes all of Maricopa and Northern Pinal Counties is 14,599 square miles, which is a lot of territory. One thing is for certain though, we encourage you to purchase a home now, regardless of interest rates.
Phoenix Real Estate Market
The Phoenix market has experienced a weakening of demand, as a result of rising interest rates, which historically would equate with a weakening of property values. What’s different about the current market is the lack of supply. The reality is, supply has decreased to a greater degree than demand, which means prices are still rising. Currently, home prices in Phoenix are on average 8.1% higher than during the same time period last year, and as announced last month, Phoenix is still the #1 fastest growing city in the U.S. People who have been waiting for prices to come down are finding themselves disappointed that they’re getting even less for their dollar.
Remember, a balanced market is considered 5.5 months of supply. The entire Phoenix Metro area is currently averaging 2 months of supply, which means some areas have even less than 2 months of supply. Distressed inventory (short sales and foreclosures) make up less than 1% of the supply, so there is currently nothing to predict any downward pressure on pricing.
Dave Ramsey’s Advice- Buy Now
Dave Ramsey is encouraging his followers not to wait out the market. His advice is “If you can find a house, regardless of the interest rate, I want you to go ahead and buy now, if you’re out of debt and you have your emergency fund in place.” He further goes on to say that “if later the interest rates come back down, you’re not stuck… just refinance and dump the old mortgage that you had at 6% or 7% or wherever it lands right now.”
If you are looking to purchase a home, reach out to the team here at the Cusick Group! Please contact us today at 480-759-1576, or visit us at Cusickgroupre.com. We look forward to talking to you!
