What’s Really Going On in the Market Right Now?

There’s a lot of noise out there about what’s happening in real estate—some people say it’s a great time to sell, others think we’re heading into another crash. So what’s actually going on?

Well… a lot, and also not much.

Right now, the biggest issue is the disconnect between buyers and sellers. Many sellers are still expecting the red-hot conditions of recent years, while buyers are waiting for deals that just aren’t happening. The result? A market stuck somewhere in between.

Inventory Is Up — But Buyers Are Down

In the Phoenix area, we currently have about 108% of the expected number of listings for this time of year. That sounds a little high, but not too bad, right?

But here’s the catch: buyer demand is at about 81% of what we usually see. That means more homes on the market with fewer people looking to buy them. And that, by definition, puts us in a buyer’s market.

What About Home Prices?

With inventory rising and demand cooling, we’ve started to see home prices soften, and many homes are selling for less than similar homes that have recently sold. We don’t expect a crash, but we do believe that prices will continue to dip in the near future. Sellers who list now may not get the numbers they were hoping for—and we’re already seeing examples of that across the Valley.

So What Should You Do?

1. Thinking of selling? If you don’t have to move right now, it may be worth waiting a couple of years. Timing could be on your side down the road. It is also worth noting that for anyone selling who purchased their home more than 4 years ago, there is likely still a significant gain in value. It is just less than it was a couple of years ago.

2. Thinking of buying? This might be your moment. With more options to choose from and less competition, buyers are in a stronger position than they’ve been in quite a while.

We can’t predict exactly when the next shift will happen (and we’re done trying). But we can help you navigate this current market with clarity and confidence.

Want to talk strategy? Let’s connect.