Historically, the 3rd week of January has been when sales volume seems to magically reverse course from its normal holiday dip. While we’ve started from an incredibly low place volume wise, 2023 has started off very well.
Usually this spike in demand continues through April/May-ish and then volume weakens throughout the summer, fall, and into the winter. We are still watching 30 year mortgage interest rates very closely. We believe that if they stay roughly the same, around 6%, we will experience a slow but steady renewal of demand as buyers become used to the new normal. We are already seeing this.
“…now officially in a seller’s market again.”
If interest rates go down to 5% or below, we actually think this could very easily open a new floodgate of pent up buyer demand. Of course, if the opposite happens, and interest rates go back close to 7% or higher, our Spring optimism could be mercilessly crushed.
On the street level, we can feel a renewed energy in the market. Buyers are coming out, contracts are being signed, and we’ve even heard tell of bidding wars here and there. Nothing like 2021 and early 2022, but things are changing.
The other big news is that according to the Cromford Index, Phoenix as a whole is now officially in a seller’s market again, just barely though! Some areas are experiencing this noticeably, and other areas, like Buckeye and Queen Creek, are still in buyer’s markets.
A good way to think about it is that the outskirt towns are still struggling while the interior areas, especially the higher end ones, are doing very well.
We look forward to keeping you updated as the situation quickly changes!