In Maricopa County, Arizona, the real estate market is starting to slow down after the pandemic-era buying frenzy of 2021. Homebuyers are beginning to see some advantages they haven’t had in a while, according to a senior analyst at Cromford Report. The area scored 61 out of 100 on NBC News’ Home Buyer Index in August, a decrease of 13 points from the previous year due to reduced competition. Buyers are now able to negotiate better deals with sellers as the market becomes less intense.
Since the Federal Reserve began hiking interest rates to combat inflation in March 2022, the real estate market in Maricopa County has seen a significant slowdown. Sales have dropped, homes are staying on the market longer, and sellers are offering incentives to attract buyers. The market is quieter than it has been in years, with some properties sitting for weeks before selling. Despite mortgage rates dropping over the summer, there has not been a significant increase in buyer demand.
Homes in Maricopa County are spending an average of 53 days on the market, up from 38 days a year ago. Sales have also decreased, with just over 4,000 homes sold in September, down 1.5% from the previous year. Political uncertainty, rising prices, and high median sales prices of $475,000 are contributing to the slower market. Sellers are hesitant to reduce prices, fearing they won’t receive any offers in the current market conditions.
The Phoenix market remains unaffordable for many residents, with a household needing to earn at least $96,000 annually to afford the typical home in Maricopa County. Rental properties are also struggling to find tenants, with rents averaging just under $1,500 in September. Evictions in Phoenix have increased in 2022, with nearly 8,000 eviction filings in August, 33% above average. The number of people experiencing homelessness in the county has also remained elevated.
Despite the challenges in the real estate market, some analysts are hopeful that the situation will improve in the future. With interest rates expected to stay relatively low and buyer demand potentially increasing, there is a chance that the market in Maricopa County could rebound. However, in the meantime, sellers may need to adjust their expectations and prices to attract buyers in the current market conditions. Overall, the real estate market in Maricopa County is experiencing a slowdown, with both buyers and sellers facing challenges in the current economic environment.
