Phoenix Metro Area Market Update – Sept 2019
Inventory is the story for the greater Phoenix real estate market in Sept! We’ve previously talked about our low inventory of homes driving a very active market, with price-segment-specific hyper-activity. Well, the inventory shortage swings into September, and active listings are down about 16% year over year.
As the very low inventory in greater Phoenix continues, prices are up accordingly, rising 6.9% year over year to a median price of $280,000. The average sales price per sq. ft. is $168.99, which is 4.8% up from last year.
Low interest rates are still with us, with 30-year money at 3.49% with .5 points for September 5, 2019. This rate is down a whopping 1.05% year over year (Freddie Mac 9/9/2019). Additionally, interest rates are expected to continue their downward trend into 2020. Much of this forecast (Freddie Mac) is predicated on continued trade difficulties and tariffs.
“The Fed could also cut rates in 2020 if an expected economic slowdown threatens to snowball. GDP growth should slow from 2.3% this year to about 1.8% next year…” (Kiplinger 8/12/2019).
What does all this mean for today’s buyers and sellers?
Low inventory and falling interest rates make for a strong seller’s market. While for buyers, waiting on the sidelines to “time the rates” to get “the lowest rate possible” might seem like an attractive idea, any potential rate benefit could well be cancelled out by our rising home prices.
Whether buying or selling, it’s important to do your homework and come prepared to act, as this is a rapidly moving market. As always, work with a knowledgeable REALTOR® that you trust. If you have any questions at all about current market trends, please feel free to give us a call! To view the Phoenix Metro Area Market Update for last month, click HERE.
We are full-time, experienced Realtors working in Queen Creek and the surrounding areas. With decades of East Valley real estate experience under our belts, we are here to answer any questions you may have. Please do not hesitate to reach out to April Anderson at 480.272.1977.
We’re looking forward to hearing from you soon!
United Brokers Group
21321 E Ocotillo Rd F113
Queen Creek, AZ 85142