AriZona Real Estate insider!

Price Reductions on the Rise

According to a recent study by Realtor.com, the Phoenix Metro area saw one of the largest increases in the share of price reductions at 9.4%. This means more sellers are cutting their asking prices to attract buyers. The market is shifting, and high-price expectations are no longer realistic.

What Does This Mean?

This surge in price reductions tells us that sellers need to face reality and start pricing their properties more reasonably. The real estate market isn’t what it was a year ago, and it will likely change again soon. To sell in today’s market, properties need to be priced competitively.

ARMLS Insights

Last month, the ARMLS Pending Price Index (PPI) indicated that Phoenix homebuyers could expect lower prices in July. While the predicted median price was $445,000, the actual median price turned out to be a bit higher at $450,000. This slight difference suggests prices are adjusting, but not drastically dropping. Stay tuned for our upcoming post on July numbers to get the latest updates.

Advice for Sellers and Buyers

• Sellers: Price your property within the current market range to attract buyers and avoid long listing times.
• Buyers: If you’ve been waiting on the sidelines, now might be a good time to consider jumping in. With more price reductions, there are better deals to be found.

We’re not calling it a crash, but it is a clear sign of a slowdown. If you have been following this blog, you will notice more topics about price cuts, increasing inventory, low home sales numbers, and buyers waiting on the sidelines. The market is shifting right in front of us, and it’s crucial to stay informed and ready to adjust your strategies accordingly. Whether you’re a buyer or a seller, understanding these changes can help you make better decisions in this evolving real estate landscape.

Below is a quick market snapshot of July housing numbers for the Phoenix Metro area. Stay tuned for our upcoming post to get the latest updates and in-depth analysis.