Good News for Phoenix Area Buyers?

By Buying, Mike's Articles, Phoenix Metro Real Estate News, Selling September 23, 2019

Well, there’s finally some good news to report for buyers in the Phoenix Area. The caveat is that we’ve reported similar stories these past few years, and then the market turns towards sellers again. So wisely, we’re keeping the crystal ball on the shelf for now, as stats for one month, doth not a trend make.

And if you compare current numbers with one year ago, you will see that we’re still firmly embedded in a seller’s market. So don’t get too excited buyers.

Active listings, pending contracts, and supply sides have moderated this past month.

Some might read this and think, “Mike, what’s the big deal here? This is not a major change towards a buyer’s market!” And this is true, except we’ve been piling on buyers not getting on the buyer bandwagon for so long, that we want our buyer clients to know we can notice changes here and there that are in their favor. And besides, we believe that any encouragement that helps buyers make the buying move is positive.

This past month, active listings, and the months of supply has risen. Demand has decreased. And sales price per square foot has decreased, yes, less than 1%, but a change, nonetheless. The rise in price per square foot over the year was 4%.

Not good news for buyers is the recent rise in mortgage rates, though very low still, did rise when Iran (purportedly) torched oil fields in Saudi Arabia. When crude oil spikes, as it did in the past two weeks, long term rates such as mortgage rates also tend to rise believing that inflation will increase. Nothing new there. Witness the oil shortage Jimmy Carter years with mortgage rates which hit 18%.

So, inventory has increased, mortgage rates look stabilized at this hour, and maybe it’s time to reconsider your buying timing.

Just a thought.

About the Author
Michael Bodeen, Associate Broker

     I was born and raised in San Rafael, California, from the mid 50’s to the early 70’s. I had super parents who worked hard to provide 5 kids with a good Catholic education – despite my best attempts to overthrow the knuckle-cracking regime of Sister Mary Anselma. My dad worked as a self-employed butcher until his retirement at 65 and enjoyed many wonderful years until mom passed away in 1992.

     Dad passed away in the fall of 2006 having lived a great and full life into his early 90’s! In California, I attended college in Chico and Sacramento as a “Sosh” major, but like many of my contemporaries, I did not have a clue what I wanted to do when I grew up. Because of my age, I missed the Vietnam War and into my early 20’s I had many typical youthful indiscretions.

     Thankfully, that was a brief period of my life, and with greater thanks, not too much damage was sustained in those early and rebellious years. And by the way, those thanks are due to the answered prayers of faithful relatives who prayed for years that a wayward Michael would turn his life over to the Lord, and in January of 1982 that’s what happened.

     I lived in Sacramento, California in the mid 70’s, and later moved to Truckee, California, which is near Lake

Tahoe and Reno, Nevada. Truckee’s often labeled the “coldest spot in the nation.” Why did I move there?

My father-in-law was a real estate broker in Donner Lake, California, and despite his cantankerous disposition, he seemed very successful in his real estate endeavors. I joined him in sales in July of 1976.

    The Truckee and Lake Tahoe area was a wonderful place to raise a family, but a difficult and cold environment to live in, but we did so for 18 years. In 1994, my wife, Karen, and I visited Scottsdale at a friend’s request, and within 8 months, our family of 5 had relocated to “the valley” – or is it a desert? Whatever it is, it’s warm. At any rate, 24 years have gone by since we made the break from the late great state of confusion, uh, California, and it’s turned out to be a great move.

     As for hobbies, I enjoy family, friends and travel. My kids Robert, Kendra, and Jonathan are now 40,

34, and 31 respectively. I recently became “gramps” for the 4th time as well. It’s a nice time of life. Karen remains as lovely on the inside and outside as the day we were married. We continue to wonderfully grow together as the years advance. As an ordained Christian Chaplain, I volunteer Preaching at Florence Prison with Along Side Ministry. The ministry helps make the formerly incarcerated able to function, even thrive, on “the outside.”

     Should you choose to have me represent you in the sale or purchase of your home, you’ll be receiving my 40+ years of real estate knowledge, counsel, and experience (including negotiation experience).

    Beyond the transaction, I’m always available to you, should you ever need my real estate advice.