By Frank May, Real Estate Agent
The end of the year is here and what a year it has been! We started the year with homes getting multiple offers and we are ending it with homes being on the market for multiple weeks, and sometimes multiple months. The main culprit was a very fast rise in interest rates. Suddenly buyers couldn’t afford what they could a month earlier and, as a result, home prices started to come down to what those buyers could afford. Add to that our record inflation and it became hard for a lot of people to afford a new home. This did cause prices to drop. And, as bad as that is for a seller, it was good for the buyers, as it helped compensate for the higher interest rates.
The good news for sellers is the same good news I’ve been writing about for the past few months––the increase in inventory slowed way down. We started April at about 5,000 homes and were up to over 20,000 by the end of September. Since then, we have fluctuated between 20,000 and 21,000 houses on the market. I have been very thankful for that slowdown in inventory.
The other good news is that the Fed’s increase in interest rates has also slowed down. We saw mortgage rates drop in the middle of November by about a half of a percent and that helped a lot of buyers (and in turn it helped the sellers). Right after that drop we had a listing that ended up with two offers, which is unheard of right now. It’s amazing how making interest rates a little more affordable can stimulate buyers (insert sarcasm). If we see a more permanent drop in interest rates, we will most certainly see our inventory drop as well. I’m impatiently waiting for this!
The beginning of each year begins with an increase in inventory, as a lot of sellers want to wait until after Christmas to put their homes on the market. So, I’m fully expecting that I will be writing about an increase next month, but that will be normal for the time of the year, so just be ready.
Now, about our community…the Upper West Side PHX Facebook ladies, Katie, and Kristi (they do an incredible job!), recently posted updates on over 20 businesses that have either opened or are opening in the area, so make sure you are following that group! We have a thriving community in the Upper Westside, and it is fun to see what businesses are still coming. These businesses are great for our real estate, as so many people want to be close to a variety of shopping, restaurants, and more. As a part of the Facebook group, you will have the opportunity to vote for new businesses you want in our area, so don’t miss out!
As always, if you ever have real estate questions please don’t hesitate to reach out. See you next year!
Frank May grew up in the Valley, graduating from Northwest Christian School and Northern Arizona University. He is a real estate agent with RE/MAX Fine Properties and has been helping both buyers and sellers for over 20 years. He has been a Dave Ramsey Endorsed Local Provider (ELP) since 2003. Learn more at mayteam.com.
