Talkin’ Shop
Greetings. The real estate market is a complex entity. In recent times, we’ve witnessed a kind of stagnation. A period where activity slowed down significantly. However, recent expert predictions suggest we may be on the cusp of change. Today on LUXE BLOG, we provide a to-the-point analysis of recent opinions and data, including for the Greater Phoenix area. Enjoy!
Market Trends & Chatter
Understanding the current market trends and future predictions is crucial for making informed decisions in real estate.
- Morgan Stanley’s Outlook: Predicts improved housing affordability by 2024.
- New Construction: Anticipated growth in home building activity.
- Second Half of 2024: Expected increase in home sales.
- Supply and Demand Dynamics: More new construction is expected to influence the market.
- Mortgage Rate Trends: Predicted rate decreases as inflation slows down and a recession is potentially announced in 2024.
The market is showing signs of moving out of its recent sluggish phase. According to Morgan Stanley, the combination of falling home prices and increased inventory, primarily due to new construction, will create a more favorable environment for buyers by 2024. Then again, if rates are decreased by The Fed because of a recession, it’s easy to see how the market could quickly tilt in favor of sellers all over again. Inventory is still thin. Especially in the luxury real estate market.
Morgan Stanley’s Predicts Improved Housing Affordability By 2024
Industry Leaders’ Thoughts
Gaining insights from industry experts can provide a deeper understanding of the market dynamics.
- Greg Kelman of Redfin: Suggests a 3% drop in home prices next year.
- Mark Zandi of Moody’s: Agrees with Morgan Stanley’s forecast.
- Home Sales Trends: Noting the lowest real estate sales in 13 years.
- Re-listing Patterns: Observations of homeowners re-listing properties at lower prices.
Greg Kelman from Redfin and Mark Zandi of Moody’s echo similar sentiments, foreseeing a decrease in home prices and an uptick in buyer activity. This is as mortgage rates soften. The trend of homeowners re-listing unsold properties at lower prices is also noted, though not so much in Greater Phoenix.
Greg Kelman Of Redfin Suggests A 3% Drop In Home Prices In 2024
Greater Phoenix Area
Looking closer at the Arizona real estate market, particularly the Greater Phoenix area, we observe the trends.
- New Construction Permits: Increasing trend in the Greater Phoenix Metro.
- Sales Rates: Greater Phoenix mirroring the national trend of low sales.
- Mortgage Rates: A slight but positive shift for buyers.
- Cromford Report Analysis: Indicating a move towards a balanced market.
The Cromford Report, a trusted Greater Phoenix market analysis source, suggests a shift towards a balanced market. This is reflected in the city’s increasing new construction permits and the general sales trend. The mortgage rates in Greater Phoenix, showing a downward trend, are also contributing to this shift.
Concluding Thoughts
The real estate market is indeed showing signs of change. While the current situation may seem challenging for sellers, the predicted increase in inventory and softening of mortgage rates hold promise for a more balanced market in the future. Only time will tell.