October 2023 Market Update from The Cromford Report

by Christie Ellis

This is directly from the bery trusted resource of The Cromford Report

Guess what? If you thought you missed the boat on buying a house last year, guess again! The Greater Phoenix housing scene is just about to hit that sweet spot – a balanced market. Sure, 18 cities are still playing hard to get with their seller’s markets, but hey, there are 11 cities waving the ‘Buyers Welcome’ flag.

So, what’s the real deal with a buyer’s market? Most folks think it's all about dropping house prices, but that's not the whole story. Before you see any dip in sales prices, you'll spot list prices getting friendlier and sellers dishing out more incentives.

In the last couple of months, as mortgage rates did their rollercoaster thing, hitting 8%, we saw a 33% jump in price reductions. And get this – sellers are now offering incentives up to $9,900. That's not just a new record for November, it's a gift to buyers, especially in the $300K-$400K range.

But, and it's a big but, no one knows how long this will last. Mortgage rates are like that one unpredictable friend – they’ve dropped a bit recently, but who knows what’s next? There are whispers that the Fed might stop hiking rates soon. If that happens, these buyer-friendly times might just be a flash in the pan.

Long story short, if you're looking to buy, keep your eyes peeled and your sneakers on this November and December. When 2024 rolls around, everyone and their dog will be back in the home-buying game.

Now, for my sellers out there, let’s keep it real. This is not the time to play 'Guess How Much My House Is Worth.' The outskirts of town are already shifting to a buyer's market – Surprise, Litchfield Park, you know who you are. And the rest are likely to follow.

Traditionally, the end of the year isn’t the best time to list, but with the market changing day by day, waiting for the new year might not be the golden ticket it usually is. More competition, more time waiting for a sale, and possibly more price cuts are on the horizon. The wild card? Those ever-changing mortgage rates.

For those who need to sell now, you might still get your price, but it could cost you more with these high rates. It's not the dream market, but it’s the one we're dancing with at the moment.

Big thanks to Tina Tamboer, the wizard of housing analysis from The Cromford Report, for these insights!