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Arizona housing market update: Why it’s a good time to buy

Thursday, February 2, 2023   /   by Juan Grimaldo

Arizona housing market update: Why it’s a good time to buy

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Over the last 12 months, the housing market in Arizona has been a rollercoaster. Home prices were rising quickly and the inventory of homes for sale was tight. Now, with average mortgage rates nearly doubled over the last year, the median sale price has dropped and active listings for sale have increased.

"Currently, the ratio between supply and demand shows the Valley moving into a balanced market," said Greg Thorell, senior vice president of residential lending at Arizona Financial Credit Union. "With mortgage rates stabilizing and demand at much lower levels, active buyers in the market are seeking price drops, seller concessions, interest rate buy-downs and negotiations to keep them in the game."

According to Thorell, “The main driver of the rate increase is inflation. The Federal Reserve uses interest rates as the most powerful tool to slow down inflation. Rate increases discourage people from spending and borrowing money, slowing demand and economic growth.”

Higher rates typically mean an increase in your monthly payment and a reduction in purchasing power. The average increase in monthly payment for a 3% interest rate jump is about $350. However, the reduction in the median sales price, interest rate buy-downs and seller concessions have created savings to soften the impact of higher rates.

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By Arizona Financial Credit Union

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The Grimaldo Group
Juan Grimaldo
2403 N Pebble Creek Pkwy #101
Goodyear, AZ 85395

© 2024 Arizona Regional Multiple Listing Service, All rights reserved. The data relating to real estate for sale on this website comes in part from the Arizona Regional Multiple Listing Service. Real estate listings held by brokerage firms other than Juan Grimaldo - Keller Williams Realty Professional Partners - The Grimaldo Group (WINBACK) are marked with the Arizona Regional Multiple Listing Service logo and detailed information about them includes the name of the listing brokers. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor Arizona Regional Multiple Listing Service shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. June 13, 2024
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