Is now a good time to purchase a house?

You might be wondering if now is a good time to purchase a home.Whether it is a good time to buy a house depends on various factors, including your personal financial situation, the local housing market conditions, interest rates, and your long-term plans.

Here are some factors to consider when deciding whether to buy a house:

1. Financial stability: Evaluate your financial situation, including your income, savings, and ability to afford a down payment, mortgage payments, and other homeownership costs.
2. Housing market conditions: Research the local housing market to understand if it favors buyers or sellers. Factors like inventory levels, average sale prices, and time on the market can give you an idea of the market conditions.
3. Interest rates: Monitor the current mortgage interest rates. Low interest rates can make homeownership more affordable, but they can fluctuate over time.
4. Long-term plans: Consider your long-term plans and how a house fits into them. Are you planning to stay in the area for several years? Does owning a house align with your financial and lifestyle goals?
5. Affordability: Evaluate the affordability of houses in your desired location. Consider factors like property taxes, insurance, maintenance costs, and potential repairs.

It’s always a good idea to consult with real estate professionals, such as real estate agents or financial advisors, who have up-to-date knowledge of the local market and can provide personalized advice based on your circumstances. They can help you make an informed decision based on current conditions and your specific needs.

Greater Phoenix Losing 246 Listings per Week in 2023
Prices Recovering, Median Up to $425K in MayIs now a 
For Buyers:

The sharp decline in supply for Greater Phoenix is a good reason for buyers to have a sense of urgency about purchasing a home. Since the beginning of 2023, supply counts have been declining at an average rate of 246 listings per week and since the peak in October, total supply is down 42%. At this rate, the effects of the massive supply surge last year
will be erased and the year-over-year change will be negative within 6 weeks. In fact, the Valley could see extremely
low supply similar to 2021 and 2022 within 7-8 months if a significant source of supply doesn’t emerge.

That being said, while prices are rising and recovering from the 2022 decline, they’re not spiking right now. This is good
news. The appreciation rate since December is considerably more modest than what the market saw from 2020-2022.
For perspective, the first part of 2022 saw the median price in Greater Phoenix rise from $425K in December to $470K
by May, an average of 2% per month. This year, after declining to $418K in December, the median sales price has risen
to just $425K as of this month, which is significantly more sustainable.

For Sellers:

Unaffected by mortgage rates, the market over $1M has seen its 2nd best year in Greater Phoenix so far. May is typically the peak of the market for buyer activity in the top tier price ranges, and after local temperatures top 100 degrees, we tend to see a noticeable slowdown as they flee to cooler climates. Expect to see a spike in luxury homes cancelling
or expiring their listings temporarily in June and then reactivate them in the Fall.

Meanwhile, demand picked up over the last month as supply continued to decline. This means continued upward pressure on price, but at a more moderate pace. The last big cities in Buyer’s Markets, Maricopa and Buckeye, are quickly moving towards balance. Average sales price per square foot has stabilized in these two areas and most cities have
seen prices turn back up this year. While year-over-year price comparisons have been negative since December, by
July or August they could turn back to positive if the current rate of appreciation is sustained.

Contact Us…

April M Anderson , REALTOR