Buyers VS. Sellers
The most recent CromfordReport.com data is real interesting. The Arizona real estate market is in somewhat of a standoff. Sellers are secure in their loans causing many homeowners to only sell if they have to do so. Basically, we have low seller motivation AND decreased buyer motivation. However, while inventory has skyrocketed since May 2022, it’s holding fairly study at levels that would be considered “balanced markets” over the past 15+ years.
- It’s rare to have both low seller motivation as well decreased buyer demand
- New home builders are slowing construction which is great because new inventory is already lowish
- These are huge differences from now and the financial crisis of 2008
What’s Causing The Correction?
- FEDS raising rates to fight inflation
- Uncertain financial markets
- It’s an election year
- Global uncertainty
- This is the 1st modern post-pandemic market
A Small Rate Change Could Be A Game Changer
Due to the fact there is so little buyer demand yet we have so many factors helping keep the market alive, we look for what’s needed to tip the market in a healthier direction. Some think that if the FEDS dropped rates by just 1-1.5% we could see enough buyer demand increase to help normalize our current situation. At the end of the day, who knows. All we can do is continuously educate our clients. Thanks for reading today’s LUXE BLOG.
Also Read: We’re Highly Experienced At Navigating Correcting Markets