AriZona Real Estate insider!

The latest figures for January’s real estate market have been released, offering valuable insights into the current state of affairs. Let’s take a closer look at the key statistics and trends shaping the landscape of the housing market during this period.

1. Sales of previously owned homes ⬆️ by 3.1% in January, driven by lower mortgage interest rates in November and December.
2. Inventory of homes for sale ⬆️ to 1.01 million units, ⬆️ 3.1% from January 2023, but remained at a low three-month supply.
3. The median existing-home price reached $379,100, marking a 5.1% ⬆️ from the previous year and an ALL-TIME HIGH for January.
4. Despite the ⬆️ in inventory, the market continues to experience pressure on home prices due to high demand and limited supply.
5. Multiple offers are common, particularly for mid-priced homes, with 16% of homes selling ⬆️ list price.
6. Cash deals accounted for 32% of sales, the highest level in nearly a decade, indicating a market driven by multiple offers and high housing wealth.
7. First-time buyers represented only 28% of sales, impacted by a lack of affordable housing options.
8. While lower mortgage rates initially boosted sales, higher rates in January began to weigh on the market, reflected in a decrease in signed contracts compared to the previous year.

Overall, the national January real estate market saw an ⬆️ in sales and inventory but continued pressure on prices and competition, with shifting mortgage rates influencing buyer behavior.

What I would tell my buyers and seller clients based on this information above is…

Advice for Sellers:

1. Price Strategically: With the slight increase in inventory and sales on the rise, it’s crucial for sellers to price their properties strategically. While it’s tempting to aim for the highest possible price, setting a realistic and competitive price will attract more buyers and potentially lead to quicker sales.
2. Highlight Features: Given the competitive market, sellers should emphasize the unique features and selling points of their homes. Whether it’s a spacious backyard, updated kitchen, or proximity to amenities, showcasing these aspects can make the property more appealing to prospective buyers.
3. Prepare for Multiple Offers: With sales increasing and demand remaining strong, sellers should be prepared for the possibility of multiple offers. Working closely with your real estate agent to evaluate and negotiate offers can help maximize returns and secure a favorable deal.
4. Stay Informed: Stay updated on market trends and developments to make informed decisions about timing and pricing. Your real estate agent can provide valuable insights and guidance based on the latest data and market conditions.

Advice for Buyers:

1. Act Quickly: With sales on the rise and inventory increasing slightly, buyers should be prepared to act quickly when a desirable property hits the market. Delaying could result in missing out on opportunities, especially in highly competitive areas.
2. Know Your Budget: Given the upward trend in prices, it’s essential for buyers to have a clear understanding of their budget and financial limits. Working with a lender to get pre-approved for a mortgage can help streamline the buying process and strengthen your offer.
3. Be Flexible: While it’s essential to have specific criteria in mind, buyers may need to be flexible in their preferences, especially if inventory remains limited in certain price ranges or neighborhoods. Prioritize must-have features and be open to compromise on less critical aspects.
4. Work With an Agent: Partnering with a knowledgeable real estate agent who understands the local market is invaluable. Your agent can help you navigate the competitive landscape, identify suitable properties, and negotiate on your behalf to secure the best possible deal.

Overall, in the Phoenix-Scottsdale-Mesa market where inventory, prices, and sales are all trending ⬆️, both buyers and sellers should approach transactions with careful consideration, flexibility, and the guidance of experienced professionals. By staying informed and proactive, clients can navigate the Phoenix-Scottsdale-Mesa market with confidence and achieve their real estate goals effectively.

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