After months of sizzling growth, the housing market in metro Phoenix is finally beginning to experience a cooling trend. According to Zillow‘s November Market Report, home values have dipped 8.1% since their peak, and inventory has grown 36% higher than last year and 11.6% since 2019.
Home selling in the U.S. is dwindling, with a recent report finding that a home takes an average of 44 days to sell compared to only 13 days last year. The markets are weakening and as of October, a typical American home holds 0.2% less value than before; even more so from its peak back in June—down half a percent according to the report.
“The housing market entered a deep freeze this November as buyers paused their purchasing plans, likely until after New Year’s in many cases,” As Jeff Tucker, senior economist for Zillow, stated in the release, “The two big questions are whether mortgage rates will continue to decline and whether that will be enough to bring buyers back in time for the spring selling season. In the meantime, those on the prowl for a house will benefit from motivated sellers, unusual bargains, and a welcome lack of competition.”
Zillow recently announced that, unfortunately, the cost of mortgages on typical homes is unlikely to see significant improvement in the near future – with a 122.5% rise in November 2019 from $2,261. Nevertheless, there is optimism for stabilizing affordability by 2023 as per the real estate information company’s forecast.
In conclusion, the housing market in metro Phoenix is experiencing a cooldown after months of robust growth. Home values have dropped 8.1%, inventory has increased, and mortgage prices remain high. Despite these challenges, there is still optimism for stabilizing affordability by 2023 and motivated sellers may be able to find an unusual bargain once the spring selling season arrives. Ultimately, the market’s future remains uncertain but there is hope for recovery in the years to come.
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